Required:

$1.$ Would you be comfortable relying on the financial data provided by the accounting department for making decisions related to the WVD drums and bike frames?

$2.$ Compute the contribution margin per unit. $[$assume direct labor is a fixed cost$]$

$3.$ Compute the contribution margin per welding hour. $[$assume direct labor is a fixed cost$]$

$4.$ Assuming direct labor is a fixed cost:

a$.$ Determine the number of WVD drums $($if any$)$ that should be purchased and the number of WVD drums and$/$or bike frames $($if any$)$ that should be manufactured.

b$.$ What is the increase $($decrease$)$ in net operating income that would result from this plan over current operations?

$5.$ Compute the contribution margin per unit. $[$assume direct labor is a variable cost$]$

$6.$ Compute the contribution margin per welding hour. $[$assume direct labor is a variable cost$]$

$7.$ Assuming direct labor is a variable cost:

a$.$ Determine the number of WVD drums $($if any$)$ that should be purchased and the number of WVD drums and$/$or bike frames $($if any$)$ that should be manufactured.

b$.$ What is the increase $($decrease$)$ in net Required:

$1.$ Would you be comfortable relying on the financial data provided by the accounting department for making decisions related to the WVD drums and bike frames?

$2.$ Compute the contribution margin per unit. $[$assume direct labor is a fixed cost$]$

$3.$ Compute the contribution margin per welding hour. $[$assume direct labor is a fixed cost$]$

$4.$ Assuming direct labor is a fixed cost:

a$.$ Determine the number of WVD drums $($if any$)$ that should be purchased and the number of WVD drums and$/$or bike frames $($if any$)$ that should be manufactured.

b$.$ What is the increase $($decrease$)$ in net operating income that would result from this plan over current operations?

$5.$ Compute the contribution margin per unit. $[$assume direct labor is a variable cost$]$

$6.$ Compute the contribution margin per welding hour. $[$assume direct labor is a variable cost$]$

$7.$ Assuming direct labor is a variable cost:

a$.$ Determine the number of WVD drums $($if any$)$ that should be purchased and the number of WVD drums and$/$or bike frames $($if any$)$ that should be manufactured.

b$.$ What is the increase $($decrease$)$ in net operating income that would result from this plan over current operations? $($PLEASE ANSWER ALL!!!!$)$