TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical ndustry. One of the company's products is a heavy-duty corrosion-resistant metal drum, called the WVD drum, used to store toxic wastes. Production is ined by the capacity of an that is used to make precision welds. A total of 2,500 hours of welding time is available annually Because each drum requires 0.8 hours of welding machine time, annual is limited to 3,125 drums. At present, the welding machine is used exclusively to make the WVD drums. The has provided the following financial data concerning the WVD drums: $158.00 $45.60 4.50 4.25 Direct labor ($18 per hour) overhead Selling and administrative e 16.50 70.85 S 87.15 Management believes 3,625 WVD drums could be sold each year if the company had sufficient management has considered drums per year at a price of $150 per drum, which TufStuff manager, has suggested that the company could make better use of to adding upplier. Harcor Industries, Inc., a supplier of quality products, buying additional drums from an outside s would be able to provide up to 2,000 would resell to its customers at its normal selling price after appropriate relabeling by manufacturing bike fra which would require only 0.2 hours of welding machine a for time per frame and yet sell for far more than the drums. Megan believes that T per year to bike manufacturers at a price of $70 each. The accounting department has provided the following data concerning the proposed new product: 70.00 Cost per frame $18.60 Direct materials Direct labor ($18 per hour) 22.50 16.85 7.60 65.55 Selling and S 4.45