Keppel Corporation manufactures and sells three different models of exterior doors. Although the doors vary in terms of quality and features, all are good sellers. Keppel is currently operating at full capacity with limited machine time.
Sales and production information relevant to each model is shown below.

Instructions
(a) Ignoring the machine time constraint, which single product should Keppel produce?
(b) What is the contribution margin per unit of limited resource for each product?
(c) If additional machine time could be obtained, how should the additional time beused?

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Product Economy $270 $144 Standard Selling price Variable costs and expenses Machine hours required $450 $260 .8 Deluxe $650 $430 1.1 .6