The income statement for Buffalo Salmon Sales, which produces smoked salmon, follows: Revenue (90,600 lbs) Expenses $634,200 Fish $144,960 Smoking materials 18,120 Packaging materials 27,180 298,980. Labour (wages) Administration Sales commissions Total expenses Pretax income 108,720. 9,060 607,020 $ 27,180 Assume that the administrative costs are fixed and that all the other costs are variable. Suppose the provincial government curtails fishing because of low fish counts. As a result, Buffalo Salmon Sales can buy only 45,300 lbs of salmon this year. Assume that the selling price, the fixed costs, and the variable costs remain the same as last year. Using only quantitative information, should Buffalo Salmon operate this year? Explain your answer, using calculations. (Hint: Before you begin, identify the type of non-routine operating decision, the decision options, and the relevant information for this decision.) (Round answer to 2 decimal places, e.g. 5.35.) Contribution margin: per lb salmon If the fixed costs can be avoided by not producing, the company If the fixed costs can not be avoided by not producing, the company produce this year. produce this year. Assume that Buffalo Salmon can buy up to 67,170 lbs of fish at $1.60/lbs and that the remainder of the fixed and variable costs remain the same as last year. Also assume that the selling price remains the same as last year and that the market will purchase at least another 31,870 lbs of fish. If the managers of Buffalo Salmon wish to sell more salmon, what should they be willing to pay to purchase more fish? (Hint: This type of decision is different from the one in the previous part. Before you begin, identify the type of non-routine decision, the decision options, and the relevant information for this decision.) (Round answer to 2 decimal places, e.g. 5.35.) Willing to pay: per lb salmon