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1. Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit $ 75 $
1. Assume a company makes only three products, A, B, and C:
Product A | Product B | Product C | ||||||||||||
Selling price per unit | $ | 75 | $ | 65 | $ | 45 | ||||||||
Variable cost per unit | $ | 37 | $ | 27 | $ | 18 | ||||||||
Machine-hours per unit | 2.55 | 3.10 | 1.15 | |||||||||||
Estimated customer demand: 740 610 855 |
The company has only 2,300 machine-hours available. What is the highest total contribution margin if the company uses its constrained resources to its full potential?
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