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ABC Company produces two types of filing storage, Standard and Deluxe. Both filing storages have to go through its own assembly and finishing departments. However,
ABC Company produces two types of filing storage, Standard and Deluxe. Both filing storages have to go through its own assembly and finishing departments. However, both of them must go through the painting department. The following information is available: Capacity of painting department 2,460 hours $ Standard 75.00 3.0 Contribution margin Painting hours for each product $ Deluxe 120.00 5.0 a) Compute the contribution margin per painting hour for each product. b) Compute the optimal mix of units for each product, assuming capacity of painting hour is the only constraint for production of the products. Explain the reason for your choice of optimal mix. c) Compute the total contribution margin earned for the optimal mix
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