ii. Daffodil Food Manufacturing (DFM) Inc. has received high demand for its high-quality and great- tasting dairy products. This trend is expected to continue consistently for quite an extended period. To cope with the growing demand, Mr Kim, the production manager, proposed to purchase a fully automated food processing machine. The Senior Management required detailed analysis and justification for the purchase because the machine is expensive. Mr Kim is insistent in his request since he is confident that the new machine will help cut down some costs, and as a result, the sales of the dairy product will significantly contribute to the company's profit. Some of the information about the production of the dairy product are as follow: Contribution per kg Fixed cost Without the new machine With the new machine $18 $4,500,000 $45 $18,000,000