Question
A Company hastwo product lines, Model Aand Model B. The unit contribution marginis, respectively,$110 for theModel A and $175 for the Model B. Both models
A Company hastwo product lines, Model Aand Model B. The unit contribution marginis, respectively,$110 for theModel A and $175 for the Model B. Both models need assembly and testing. Each Model A requires 3 hours to assemble, while eachModel B requires 4 hours. The total time available in the Assembly Department is 12,240 hours. In addition, each Model Arequires 2.5 hours to test and each Model B requires1.5 hours to test.Thetotal time available in the Testing Department is 6,090 hours.
a.Based on this information, what is the optimum production plan for the company?(Round answers to whole numbers.)
Model A =units
Model B =units
b.At the optimum production level, what is the total contribution margin?(Use whole numbers in units. Round the final answerto a whole number.)
Total Contribution = $
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