2. Best Use of Scarce Resource DigiCom Corporation produces three sizes of television sets: 12-inch screen, 26-inch screen, and 40-inch screen. Revenue and cost information per unit for each product is as follows: 12-inch screen 26-inch screen 40-inch screen Selling price $125 $330 $600 Direct materials 40 64 187 Direct labor 8 24 48 Variable overhead 20 54 100 Fixed overhead 5 10 16 Variable selling costs 10 20 85 Fixed selling costs 15 6 25 Maximum units that can be sold next month 6,000 units Hours per unit required on the 0.5 2,000 units 1.5 4,200 units 3 specialized equipment The company has a constraint on the amount of specialized equipment time available to produce television sets. The total amount of equipment time available for next month's production is 4,000 hours. a. What is the contribution margin per unit and contribution margin per equipment hour for each product type? Contribution margin per unit Contribution margin per hour 12-inch screen 26-inch screen 40-inch screen b. DigiCom will not produce more units than it can sell each month. How many of each type of television set should be produced and sold next month to maximize the company's profit? Show your calculations clearly. Ans: 12-inch televisions requiring hours 26-inch televisions requiring hours 40-inch televisions requiring hours