Refer to the Billings Company information provided in Exercise 13-33. Also, assume that only 500 units of

Question:

Refer to the Billings Company information provided in Exercise 13-33. Also, assume that only 500 units of each product can be sold.

Required:

1. What is the optimal mix of products?

2. What is the total contribution margin earned for the optimal mix?

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...