FULL SCREEN PRINTER VERSION BACK Problem 4.43 (Part Level Submission) Metlock Co. manufactures three different models of colour plasma screens: PS1, PS2, and PS3. Data on the three models is presented below: PS1 PS2 PS3 Selling price $340 $480 $500 Unit variable cost $226 $312 $372 Annual production units 5,130 3,000 4,130 Machine-hours per unit 6 128 Avoidable fixed costs, if product line is eliminated $43,500 $42,000 $57,300 Metlock's production capacity is 89,968 machine-hours per year. Chiyo Co. has offered to purchase 4,720 units of a simpler version of PS3 for $445. Metlock estimates that this version of the PS3 would result in variable costs of $328 per unit to man and 7 machine hours per unit, but an additional fixed cost of $66,900 for a new assembly machine. The order has to be either taken into or rejected totally. If Metiock takes the specie It will not produce and sell PS3 to compete with Chiyo. (a) Compute the profitability Index for each model and rank the order of priority for the models to be produced. (Round answers to 2 decimal places, e.g. 15.25.) Pofitability index PS1 Taxation - Cha....pdf A Solutions to se....xdsx Removed Relevant Costdocx Solutions to R.docx Removed MacBook Air