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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 2.5 3.0 1.25

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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