1. Roman and Clive have a plan to manufacture barbeque grills. They are writing their business plan for RC Grills in order to get investors and have put together the following costs:
2. Rent: $10,000/month
3. Packaging: $7 per grill
4. Equipment: $75,000
5. Staff Salaries: $12,000/month
6. Assembly and manufacturing labor: $16/hour
7. Raw materials: $100/grill
8. Utilities: $1,000/month
9. Outsourced painting: $30/grill
10. Insurance: $5,000/year
11. Scrap rate on raw materials and packaging: 1%
12. Time to manufacture and assemble 1 grill: 90 minutes

Clive discovers that if they add a rotisserie unit, labor increases to 2 hours each, the cost

of the rotisserie unit is another $20 and the sales price goes to $350. There are no additional scrap cost as defective units may be returned to the manufacturer, nor are there any additional equipment costs. Should they add this unit?