Novex Inc, manufacture two kinds of cutlery sets Silver and Gold and the company is running at

$100\%$ capacity. Because of the huge demand, Novex sells whatever it produces and is thinking of

expanding the facility. Based on the following data, please help Novex to decide which product

line to focus on:

Gold $($Per unit$)$ Silver $($Per unit$)$

Sale Price $$100$ $$55$

Variable Expense $$30$ $$27\mathrm{.}5$

Contribu$$on Margin $$70$ $$27\mathrm{.}5$

Contribu$$on Margin ra$$o $70\%50\%$

Once the facility is expanded, the capacity will increase to $3000$ machine hours per month. The

facility can produce either $45$ silver or $16$ gold cutlery sets per machine hour.

You are required to:

$1.$ Determine the factor of concern for Novex

$2.$ Compute and prepare a detailed analysis to show which product line to emphasize and

why.