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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
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: 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? 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
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