Lorge Corporation manufactures and sells three different models of exterior doors. Although the doors vary in terms

Question:

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

Lorge Corporation manufactures and sells three different models

Instructions
(a) Ignoring the machine time constraint, which single product should Lorge 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?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...