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A firm produces products X, Y and Z with contribution margins of $10, $5 and $4 respectively. The firm has only 5000 machine hours available
A firm produces products X, Y and Z with contribution margins of $10, $5 and $4 respectively. The firm has only 5000 machine hours available for a particular period. Machine hours required for each of the products are 5, 1 and 1 hours respectively. Demand for the products is 1000 for X, 2500 for Y and 2000 for Z. How many units of each product should the firm produce to maximise profits?
Select one:
a.1000 X
b.5000 Y
c.2500 Y and 2000 Z
d.100 X, 2500 Y and 2000 Z
e.500 X, 2500 Y and 2000 Z
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