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Gyro Company manufactures Products T and W and is operating at full capacity. Manufacturing Product w requires three times the number of machine hours required

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Gyro Company manufactures Products T and W and is operating at full capacity. Manufacturing Product w requires three times the number of machine hours required for Product T. Market research indicates that 1,000 additional units of Product W could be sold. The contribution margin by unit of product is as follows: Product T Product w $300 $325 (235) (250) Sales price Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin $65 $75 (10) (25) $40 $65 Determine the increase or decrease in total contribution margin if 1,000 additional units of Product W are produced and sold

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