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Need the ones with red x answered metal drum TuStufT, Inc., sells a wide range of drums, bins, boxes, and other containers that are used

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metal drum TuStufT, 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 called the WVD drum, used to store toxic wastes. Production is constrained by the capacity of an automated welding machine that is used to make precision welds. A total of 2,100 hours of welding tme is avaiable annually on the machine. Because each drum requires 0.8 hours of welding machine time, annual production is imited to 2,625 drums. At present, the welding machine is used to make the WVD drums. The accounting department has provided the following financial data concerning the WWD drums S179.00 Cost per drum $46.90 4 50 Dieect labor ($18 per hour) Selling and 17.80 74.75 104.25 t beleves 3,125 WVD drums could be sold each year if the company had sufficient manufacturing capacity As an aternative to adding another welding machine, management has considered buying additional drums from an outside supplier Harcor Industries, Inc a supplier of quality products, would be able to provide up to 1,800 WVD-type drums per year at a pnice of $120 would resell to its customers at ns normal seling price ater Flores, Tutstufts manager, has suggested that the company could make beter use of the welding machine by manutacturing bike frames, which would require only 0 2 hours of welding machine time per frame and yet sell for far more than the drums Megan believes that Turstutt could sell up to 3,100 bike trames per year to bike manufacturers at a price of $78 each. The accounting department has provided the tollowing data concerning the proposed new product Bike Frames Seling price per trame Cost per t s 78.00 Direct labor (318 per hour) Selling and $19 90 22 50 18.15 890 69 45

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