1.El Cheepee makes three models of its office chairs. Use the following data to determine the most profitable sales mix if demand is unlimited.

Complete the chart below

Product Contribution Margin

Standard

Luxury

Elegant

Selling Price per Unit

$125

$300

$450

Variable Cost per Unit

80

175

215

Contribution Margin per Unit

Labor Hours per Unit

1.5 hours

5 hours

8 hours

Contribution Margin per Labor Hour

Assuming market demand is unlimited no matter which model is produced, which of the three models should be produced?________________

How many of the other models should be produced?________________