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Gyro Company Manufactures Products T and W and Is Operating

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Gyro Company manufactures Products T and W and is operating at full capacity. To manufacture Product W requires three times the number of machine hours required for Product T. Market research indicates that 1,000 additional units of Product W could be sold. The contribution margin by unit of product is as follows: Gyro Company manufactures Products T and W and is operating at full capacity. To manufacture Product W requires three times the number of machine hours required for Product T. Market research indicates that 1,000 additional units of Product W could be sold. The contribution margin by unit of product is as follows:   Calculate the increase or decrease in total contribution margin if 1,000 additional units of Product W are produced and sold. Calculate the increase or decrease in total contribution margin if 1,000 additional units of Product W are produced and sold.

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