That ceo want to cut back on production of the fishing

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Reference no: EM1355838

Westfield Corporation makes two different boat anchors-a traditional fishing anchor and a high-end yacht anchor-using 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.

Reference no: EM1355838

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