Question
A company makes three products: X, Y, and Z. The following details relate to those products: Product X Product Y Product Z Demand (in units)
A company makes three products: X, Y, and Z. The following details relate to those products:
Product X Product Y Product Z Demand (in units) 700 600 800
Selling price / unit $80.00 $65.00 $45.00
Variable cost / unit $35.00 $26.00 $20.00
Machine-hours / unit required 1.25 3.0 2.5
The company has a total of 3,600 machine-hours available.
a) How many units of each product should the company produce (round to 2 decimal places for units - i.e., XX.XX)?
b) What is the maximum contribution margin that can be realized?
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
