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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Business Accounting Uk Gaap Volume 2
Authors: Alan Sangster, Frank Wood
1st Edition
0273718800, 9780273718802
