Solved

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

Question 101

Essay

Short Inc has 5,200 machine hours available each month.The following information on the company's three products is available:
 Product  Product  Product 123 Contribution margin per  unit 345.00$54.00$22.50 Machine hours per unit 321 Sales demand in units 9001,0003,000\begin{array} { | l | r | r | r | } \hline & \text { Product } & \text { Product } & \text { Product } \\& \mathbf { 1 } & \mathbf { 2 } & \mathbf {3} \\\hline \begin{array} { l } \text { Contribution margin per } \\\text { unit }\end{array} & 345.00 & \$ 54.00 & \$ 22.50 \\\hline \text { Machine hours per unit } &\mathbf { 3 } & \mathbf { 2 } & \mathbf {1}\\\hline \text { Sales demand in units } & 900 & 1,000 & 3,000 \\\hline\end{array}

Required:
a.What production schedule will maximize the company's profits?
b.What will be the maximum possible contribution margin?

Correct Answer:

verifed

Verified

a.CM/hr for P1: 45/3 = $15;P2: 54/2 = $2...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents