Moxy Inc. has 9,600 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l r r r }
& \text { Product X } & \text { Product Y } & \text { Product Z } \
\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \
\text { Machine hours per urit } & 8 & 12 & 6 \
\text { Sales demand in units } & 500 & 750& 1,000
\end{array}$$
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Question

Moxy Inc. has 9,600 machine hours available each month. The following information on the company's three products is available:
 $$\begin{array} { l r r r } 
& \text { Product X } & \text { Product Y } & \text { Product Z } \
\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \
\text { Machine hours per urit } & 8 & 12 & 6 \
\text { Sales demand in units } & 500 & 750& 1,000
\end{array}$$ 
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 Moxy Inc. has 9,600 machine hours available each month. The following information on the company's three products is available:
 $$\begin{array} { l r r r } 
& \text { Product X } & \text { Product Y } & \text { Product Z } \
\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \
\text { Machine hours per urit } & 8 & 12 & 6 \
\text { Sales demand in units } & 500 & 750& 1,000
\end{array}$$ 
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

Moxy Inc Has 9,600 Machine Hours Available Each Month Required: A

Moxy Inc Has 9,600 Machine Hours Available Each Month Required:
A