The company chronicauy has no idle capacity and the old Model 8100 machine is the company's constraint.
Management is considering purchasing a Model B300 machine to use in addition to the company's present Model
8100 machines. The old Model B100 machine wilL continue to be used to capacity as before, with the new Model
8300 machine being used to expand production. This wilL increase the company's production and sales. The
increase in volume wilL be Large enough to require increases in fixed selling expenses and in general administrative