The Small Manufacturing Company is operating at capacity. If the company
had extra capacity, it could accept a special order from the Robust Company
that would generate $100,000 of additional income. In order to accept this
order, the Small Manufacturing Company would have to either: (1) stop
producing Product Little, one of its product lines that is contributing $40,000 in
income or (2) subcontract with the Large Company for the production of
Product Little. What is the most that the Small Company should offer the Large
Company for the production of Product Little?
? $40,000
? $100,000
? $60,000
? $140,000