Price per atomiser Maximum weekly demand (atomisers) 65.000 1.45 90 000 1,20 110:000 There is enough capacity on the atomiser machine, but the factory is operating near capacity in other areas. The new atomiser product would have to be produced by reducing production in other areas and two alternatives have been identified: (1) Reduce production of bottles of 'Fleur" by 307 p.a. or [2) Reduce production of bottles of 'Rose by 3816 p.a. The directors consider that the new product must cover any loss of profit caused by this reduction in volume. They are aware that bowling is a much more labour intensive process that atomizing perfume. They are also aware that market research has shown growing customer dissatisfaction with the wastage of perfume sold in bottles, particularly the type of bottle that 'Fleur" Perfume is sold in. All labour is accounted for as variable costs. The Board will expect your report to contain: [1) The current annual pront being made by the company. [2) The contributions that the various alternative sales levels of atomisers might make [3) A recommendation as to the most profitable course of action. (4) An overall recommendation based on the quantitative factors above and, most importantly, the qualitative factors based on the information provided and also based on your research Given the facts of this case