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Required: 1 . Would you be comfortable relying on the financial data provided by the accounting department for making decisions related to the WVD drums

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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 REQUIREMENTS AND LOOK AT THE PICTURES!!)
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