Inc. sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company's products is a heavy duty corrosion-resistant metal drum, oalled the WWD drum, used to store toxic wastes Production is constrained by the capacity of an automated welding machine that is used to make precision welds. Atotal of 2.000 hours of welding time is annualyon the machine. Because each drum requines 0.4 hours of welding machine time, annual production is lmited to 5,000 drums. At present, the welding machine is used exclusively to make the drums. The accounting department has provided the following financial data conoeming the WWD dnums: Selling price per drum 149.00 $52.10 Direct labor 18 per hour) 360 4.50 Selling and administratve.xpense 58.00 Margin per drum Management believes 6,000 wwo drums could be sold each year if the company had suffcient manufacturing capacity, As an ahematve toadding another welding machine, management has oonsidered buying additional drums from an outside supplier, Haroor Industries, Inc a suppier of quality products, would be able to provide up to 4.000 wwD-type drumsper yoar ata prioo of S138 por drum, which TutStuff would resell to its atits normal selling price after appropriate relabeling. manufacturing bike frames, which would requiro only 0.5 hours of welding Mogan Flores, TufStuffs production managor, has suggostodthat the oompany oould make bettor use of the wolding machine by at a price of S239 each. The accounting machine time per frame and yet sel for far more than the drums. Megan believes that TufStufcould sell up to 1.600 bike frames per year to bike manufacturers department has provided the folowing data conceming the proposed new product: 239.00 Selling proo per frame Direct labor IS18 per hour) 3600 212.00 Selling and administrative expense 27 00