Short Inc. has 5,200 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l r r r }
& \text { Product 1 } & \text { Product 2 } & \text { Product 3 } \
\text { Contribution margin per unit } & \$ 45.00 & \$ 5 4 . 0 0 &\$ 2 2 . 5 0 \
\text { Machine hours per unit } & 3 & 2 & 1 \
\text { Sales demand in urits } & 900 & 1,000 & \mathbf { 3 , 0 0 0 }
\end{array}$$
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Question

Short Inc. has 5,200 machine hours available each month. The following information on the company's three products is available:
 $$\begin{array} { l r r r } 
& \text { Product 1 } & \text { Product 2 } & \text { Product 3 } \
\text { Contribution margin per unit } & \$ 45.00 &  \$ 5 4 . 0 0 &\$ 2 2 . 5 0  \
\text { Machine hours per unit } & 3 & 2 & 1 \
\text { Sales demand in urits } & 900 & 1,000 & \mathbf { 3 , 0 0 0 }
\end{array}$$ 
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Quizplus · Accepted Answer

The Answer of Short Inc. has 5,200 machine hours available each month. The following information on the company's three products is available:
 $$\begin{array} { l r r r } 
& \text { Product 1 } & \text { Product 2 } & \text { Product 3 } \
\text { Contribution margin per unit } & \$ 45.00 &  \$ 5 4 . 0 0 &\$ 2 2 . 5 0  \
\text { Machine hours per unit } & 3 & 2 & 1 \
\text { Sales demand in urits } & 900 & 1,000 & \mathbf { 3 , 0 0 0 }
\end{array}$$ 
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Short Inc Has 5,200 Machine Hours Available Each Month Required: A

Short Inc Has 5,200 Machine Hours Available Each Month Required:
A