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Management believes 6,000 WVD drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine, management has considered buying additional drums from an outside supplier. Harcor Industries, Inc., a supplier of quality products, would be able to provide up to 4,000 WVD-type drums per year at a price of $138 per drum, which TufStuff would resell to its customers at its normal selling price after appropriate relabeling.
Megan Flores, Tuf Stuffs production manager, has suggested that the company could make better use of the welding machine by manufacturing bike frames, which would require only 0.5 hours
Approaches to Expanding long term Capacity There are two major approaches to expanding the long term capacity viz. All at once and Building a capacity increm
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a firm isconsidering replacement of a machien, whoes cost price is rs 12200 and scrap value is rs 200 the running cost is rupee given below year running cost 1 200 2 50
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