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(8 minutes) MacDonald Industries manufactures and sells three different models of vacuum cleaners. The company is currently operating at full capacity with limited machine time.
(8 minutes) MacDonald Industries manufactures and sells three different models of vacuum cleaners. The company is currently operating at full capacity with limited machine time. Sales and production information relevant to each model on a per unit basis is as follows. Economy Standard Deluxe Selling price $30 $50 $100 $18 $42 Variable costs and expenses $12 Machine hours required 0.1 0.25 0.5 1) Ignoring the time constraint, which single product should the company produce? 2) What is the contribution margin per unit of limited resource for each product? 3) Contribution margin per unit for Economy? $ 4) Contribution margin per unit for Standard? $ 5) Contribution margin per unit for Deluxe? $ 6) If it could obtain additional machine time, on which product should the company use the additional time
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