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The case is quite long so I will try to make it a short version.The question said a company can produce 2500 drums per year with limited machine hours, but the managers believe they can sell 3000 drums, and they also suggest to produce mountain bikes frame (can produce 3500 with limited machine hours) to have a better use of the machine.Because the workers have a fixed 40 hours workload no matter what they produced, the managers want to make direct labour a fixed cost, but someone disagreed.so it asked that When direct labor is variable cost, how many drums and/or MBF should they produce and how many drums should they buy.My question is that when i use Excel Solver to solve this problem, it shows that when the company produced 3500 MBF and 1625 drums, and purchase 1325 drums, the total margin is maximum at 297118.8.But my team members said that because the contribution margin per machine hour of durms is higher, so the company should produce 0 MBF and 2500 drums, and purchase 500 drums. The total margin now is 274325.so I wonder which one is correct and why.

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