Russ : "John, I'm at capacity. By making the cushion seats for you, I'll have to cut my production of deluxe office stools. The labor time freed by not having to fabricate the frame assemble the deluxe stool can be shifted to the frame fabrication and assembly of the economy office stool. Fortunately, I can switch my labor force between these two models of stools without any loss of efficiency. As you know, overtime is not feasible alternative in our community. I'd like to you at variable cost, but have excess demand for both products. I don't mind changing my product mix to the economy model if I get a good return on the seats I make for you. Here are standard costs for the two stools and a schedule of my manufacturing overhead.