Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is
Question:
Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 10,000 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows:
Required:
Determine how many units of each product Lakeside should produce to maximize contribution margin in April.
Transcribed Image Text:
April demand Contribution margin. Product Product A B 6,000 units $300 per unit Required machine hours . . . . 3 per unit 4,000 units $250 per unit 2 per unit
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