Write a short memo to ralph sampson defining the analysis

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Reference no: EM13103366

Westfield Corporation makes two dissimilar boat anchors - a traditional fishing anchor and a high-end yacht anchor - utilizing the same production machinery. The contribution edge of the yacht anchor is three times as high as that of the other product. The company is presently operating at full capacity and has been doing so for nearly two years. Ralph Sampson the company's CEO needs to cut back on production of the fishing anchor thus that the company can make more yacht anchors. He utters that this is a no-brainer for the reason that the contribution margin of the yacht anchor is so much higher.

Instructions

Write a short memo to Ralph Sampson defining the analysis that the company should do before it makes this decision as well as any other considerations that would affect the decision

Reference no: EM13103366

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