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ABC Company manufactures three types of filing boxes. Each type requires the use of a special machine that has a limited capacity each year. Information

ABC Company manufactures three types of filing boxes. Each type
requires the use of a special machine that has a limited capacity each year.
Information on the three types of storage units is as follows:
Special machine capacity 18,000
Basic Standard
Selling price $ 10.80 $ 36.00
Variable cost $ 7.20 $ 24.00
Machine hours required 0.12 0.60
The company believes that it can sell as many units as it can produce for each
type of the products.
Required:
c) Compute the number of each type of products to be produced (4 Marks)
to MAXIMIZE the company's contribution margin. Basic
(Hint: the type of product that has the highest contribuiton margin
per machine hour should be produced first, followed by the next highest
in order, and then the least contribution margin. The number of units
that can be produced is constrained by the special machine capacity.)
Standard

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