a

Deluxe Total Taylor Inc. manufactures three chair models, Standard, Premium, and Deluxe. The following per unit data per week apply: Standard Premium Maximum weekly demand (in units) 200 150 Current weekly production (in units) 150 150 Contribution margin per unit $28 $30 Number of machine hours required 2 3 200 550 units 200 500 units $40 5 Maximum Machine hours per week 1,750 hours Required: a) What is the contribution margin per machine hour for each model? b) What is the total contribution margin at the current level of production for each model? c) Given maximum capacity of 1,750 machine hours, how many MHs would you recommend of each model to maximize weekly production profits? How many units of each model? d) If there is no limit for MHs available per week (instead of only 1,750 MHs per week). how many chairs of each model should Atlanta produce to maximize profits? e) Max Profits with no capacity limit but with 500 units to sell