Blomstrom Products Inc. makes two products-N81W and V55S. Product N81W's selling price is $20.00 and its unit variable cost is $12.00. Product V55S's selling price is $108.00 and its unit variable cost is $97.20. The monthly demand is 3,940 units for product N81W and 1,140 units for V55S. The constrained resource is a particular machine that is available for 10,400 minutes each month. Each unit of product N81W requires 2 minutes on this machine and each unit of product V55S requires 6 minutes on this machine.
-How many units of product V55S should be produced each month?
A) 420
B) 1,140
C) 2,453
D) 0

Question

Quizplus · Accepted Answer

The contribution margin per minute for N81W is $4.00 and for V55S is $1.80. To maximize profit, prioritize N81W. After producing 3,940 units of N81W, 2,520 minutes remain for V55S, allowing production of 420 units.