Introduction to Performance Management (PM4014) Individual Assignment DW Technology Ltd. is a manufacturer of hospital beds. The selling price per unit of its current product is $950. The manufacturing & marketing costs per unit are shown below (costs at the normal volume of 3000 units per month). Manufacturing Costs per unit Direct materials 1901 Direct labour 150 Variable production overhead 100 Fixed production overhead SO Total manufacturing costs per unit 520 Marketing Costs per unit Variable marketing overhead 100 Fixed marketing overhead 50 Total unit marketing costs 110 Total unit costs Note: 30% of this is for shipping, a) An external contractor offers to make & ship the 1500 beds directly to DW Ltd.'s customers as orders arrive from DW Ltd.'s sales team. The idle time created if the contractor's offer is accepted will be enough to produce 1500 of a new motorised bed with an estimated selling price of $1750. The variable cost per unit to manufacture the new bed is estimated to be $1450 while fixed manufacturing & marketing costs are expected to remain unchanged. The product mix will now be 1500 of the current hospital beds & 1500 of the new motorised beds. If the contractor offers a price of $750 per bed, should DW Ltd. accept his offer? (Show all supporting calculations). b) Dan Wong, the Production manager, has discovered 500 beds of an older model during stock take. While the design is rather outdated, the beds can still be sold using DW Ltd.'s usual channels. What is the lowest price per bed that DW Ltd. should accept for these obsolete beds if they are to be discarded if not sold. (Show all supporting calculations). c) Discuss the Non-financial Factors that DW Ltd. should also consider before accepting the external contractor's offer (Approximately 1500 words)