Drums, bins, boxes, and other containers that are used in the petroleum industry are sold by Holden Inc. One of the company's products is a heavy-duty, environmentally friendly, corrosion-resistant metal drum, called the STR drum, used to store toxic wastes. Production is constrained by the capacity of an automated welding machine that is used to make precision welds. A total of 4,500 hours of welding time is available annually on the machine. Since each drum requires 0.6 hours of welding time, annual production is limited to 7,500 drums. At present, the welding machine is used exclusively to make the STR drums. The accounting department has provided the following financial data concerning the STR drums: STR Drums Selling price per drum .... $225.00 Cost per drum: Direct materials ....................um $ 78.15 Direct labour ($27 per hour) ... ........... 5.40 Manufacturing overhead . .... 6.75 Selling and administrative expenses. 44.70 135,00 Margin per drum.... $ 90.00 d Management believes that 9,000 STR drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine, management has considered buying additional drums from an outside supplier of quality products, Anderson Industries Inc. Anderson would be able to provide up to 6,000 STR-type drums per year at a price of $207 per drum, which Holden would relabel and sell to its customers at its normal selling price. Candace Burke, Holden's production manager, has suggested that the company could make better use of the welding machine by manufacturing wrought iron park benches, which would require 0.75 hours of welding time per bench and yet sell for far more than the drums. Burke believes that Holden could sell up to 2,400 wrought iron park benches per year to municipalities and conservation areas at a price of $360 each. The Accounting Department has provided the following data concerning the proposed new product