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Ames Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Selling price Variable costs per unit Machine
Ames Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Selling price Variable costs per unit Machine hours to produce A Product B C $6 $12 $15 $3 $10 $12 2 0.5 1 Compute the contribution margin per unit of the limited resource (machine hours) for each product. Assuming 1,500 additional machine hours are available and demand for each product is 800 units, how many units of each product should be manufactured to maximize total contribution margin? A
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