This process has only two tasks. Units are inspected after each task and scrapped if defective. Table 2 below shows the variable cost at each task and each task's current yield, as well as how much the yield could be improved to and at what cost.

The product is sold for $100. If you start out with enough labor and material at Task 1 to produce 1000 units if the yield is 100%, how much would the contribution be after investing in the improvement, for each option? Assume you will invest in the improvement, then produce this product at 1000 units per year for two years.

Task	Variable Cost Added at this task	Current Yield	Yield if Improved	Cost to Improved
1	$30.00	93%	97%	$2,000
2	$20.00	91%	96%	$4,000

What is the contribution in the first year at current yields for the tasks?

(Remember to factor in improvement cost)

What is the contribution in the first year if you only improve Task 1?

(Remember to factor in improvement cost)

What is the contribution in the first year if you only improve Task 2?

(Remember to factor in improvement cost)

What is the contribution over two years if you only improve Task 1?

(Remember to factor in improvement cost)

What is the contribution over two years if you only improve Task 2?

(Remember to factor in improvement cost)