Rainier Inc. has 6,400 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l r r r }
& \text { Product X } & \text { Product Y } & \text { Product Z } \
\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \
\text { Machine hours per unit } & 2 & 3 & 2 \
\text { Sales demand in units } & 1,000& 1,500 & 1,500
\end{array}$$
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Question

Rainier Inc. has 6,400 machine hours available each month. The following information on the company's three products is available:
 $$\begin{array} { l r r r } 
& \text { Product X } & \text { Product Y } & \text { Product Z } \
\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \
\text { Machine hours per unit } & 2 & 3 & 2 \
\text { Sales demand in units } & 1,000& 1,500 & 1,500
\end{array}$$ 
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 Rainier Inc. has 6,400 machine hours available each month. The following information on the company's three products is available:
 $$\begin{array} { l r r r } 
& \text { Product X } & \text { Product Y } & \text { Product Z } \
\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \
\text { Machine hours per unit } & 2 & 3 & 2 \
\text { Sales demand in units } & 1,000& 1,500 & 1,500
\end{array}$$ 
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Rainier Inc Required: A

Rainier Inc Required:
A