KOBRIN ENGINEERING LTD Kobrin Engineering Ltd is experiencing trouble with its suppliers. The firm produces a variety of valves requiring one complex bought-in component per valve costing $50 each and specially imported high-grade steel. The standard cost cards for the types of valve produced are as follows. Valve type TW VE EC SE E E E E Steel 250 500 190 390 Bought-in component 50 50 50 50 Variable labour 60 60 50 100 Variable production costs 40 50 40 50 Fixed production costs 180 240 150 270 Selling and administration costs 145 225 120 215 Profit 35 55 30 55 Selling price 760 1,180 630 1,130 All the selling and administration costs are fixed. Labour is paid $4 per standard hour and each member of the workforce is capable of producing any of the valves. Kobrin's major customer has ordered 30 TW, 20 VE, 30 EC and 20 SE valves for the coming month. Despite the firm's difficulties, it is felt that these must be supplied to ensure future business. It is thought that this order represents some 10% of total maximum demand for each type of valve