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A company manufactures two products X and Y. Each product requires assembly and packaging. Below is the information related to the manufacturing process: Product X
A company manufactures two products X and Y. Each product requires assembly and packaging. Below is the information related to the manufacturing process:
Product X | Product Y | |
Contribution Margin per unit | $ 120 | $ 130 |
Assembly hours per unit | 4 | 5 |
Packaging hours per unit | 2 | 2 |
Total hours available for assembly | 13000 | |
Total hours available for packaging | 6000 | |
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a) Given the two constraints above, how many units of each product should the company manufacture to maximize its profit? (Round answers to whole numbers.)
b) At the production level above, what is the total contribution margin for the company?
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