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Western Chassis produces high - quality polished steel and aluminum sheeting and two lines of industrial chassis for the rack mounting of Internet routers, modems,

Western Chassis produces high-quality polished steel and aluminum sheeting and two lines of
industrial chassis for the rack mounting of Internet routers, modems, and other telecommunications
equipment. The contribution margin (contribution toward profit) for steel sheeting is $0.30 per
pound and for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of
a Standard chassis rack and $15 contribution on a Deluxe chassis rack. During the next production
cycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or in
chassis. Similarly, 20,500 pounds of aluminum are available.

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