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Westfield Corporation makes two different boat anchorsa traditional fishing anchor and a high-end yacht anchorusing the same production machinery. The contribution margin of the yacht
Westfield Corporation makes two different boat anchorsa traditional fishing anchor and a high-end yacht anchorusing the same production machinery. The contribution margin of the yacht anchor is three times as high as that of the other product. The company is currently operating at full capacity and has been doing so for nearly two years. Ralph Sampson, the company's CEO, want to cut back on production of the fishing anchor so that the company can make more yacht anchors. He says that this is a no-brainer because the contribution margin of the yacht anchor is so much higher. Instructions Write a short memo to Ralph Sampson describing the analysis that the company should do before it makes this decision and any other considerations that would affect the decision
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