Selling price per drum $ 165.00 cost per drum: direct materials $52.10 direct labor ($22 per hour) 4.40 manufacturing overhead 6.90 selling and administrative expense 30.60 94.00 margin per drum $ 71.00 management believes 6,100 wvd drums could be sold each year if the company had sufficient manufacturing capacity. as an alternative to adding another welding machine, management has considered buying additional drums from an outside supplier. harcor industries, inc., a supplier of quality products, would be able to provide up to 4,100 wvd-type drums per year at a price of $150 per drum, which tufstuff would resell to its customers at its normal selling price after appropriate relabeling. megan flores, tufstuff’s production manager, has suggested the company could make better use of the welding machine by manufacturing bike frames, which would require only 0.5 hours of welding machine time per frame and yet sell for far more than the drums. megan believes that tufstuff could sell up to 1,680 bike frames per year to bike manufacturers at a price of $259 each. the accounting department has provided the following data concerning the proposed new product: bike frames selling price per frame $ 259.00 cost per frame: direct materials $101.80 direct labor ($18 per hour) 35.20 manufacturing overhead 40.00 selling and administrative expense 51.00 228.00 margin per frame $ 31.00