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3. Unit Contribution Margin per Unit of Constraint The Ramos Company manufactures two products: Treadmills and Steppers. The costs and revenues are as follows: Treadmill

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3. Unit Contribution Margin per Unit of Constraint The Ramos Company manufactures two products: Treadmills and Steppers. The costs and revenues are as follows: Treadmill Stepper (or Elliptical Trainer) $300.00 $175.00 Sales Price per Unit Variable cost per Unit $160.00 $85.00 Stepper Total demand for the Treadmill product is 7,000 units and for the Elliptical Trainer product is 5,000 units. Machine time is a scarce resource. During the year, 48,000 machine hours are available. A Treadmill requires 6 machine hours per unit, while an Elliptical Trainer requires 2.5 machine hours per unit. Stepper Required: a. What sales mix will generate the maximum contribution margin. b. What will be the maximum possible contribution margin

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