Pasadena Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down - only 360 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows: a. In what order should Pasadena prioritize production of the products?
b. How many of each product should be sold while the machine is down to maximize profit?
c. What is the total contribution margin if Pasadena prioritizes production according to its limited resources?

Question

Pasadena Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down - only 360 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:  a. In what order should Pasadena prioritize production of the products?
b. How many of each product should be sold while the machine is down to maximize profit?
c. What is the total contribution margin if Pasadena prioritizes production according to its limited resources?

Quizplus · Accepted Answer

The Answer of Pasadena Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down - only 360 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:  a. In what order should Pasadena prioritize production of the products?
b. How many of each product should be sold while the machine is down to maximize profit?
c. What is the total contribution margin if Pasadena prioritizes production according to its limited resources?