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Assume now that there is no sales mix constraint but that the other constraints remain unchanged. a. If there is no required sales mix, what
Assume now that there is no sales mix constraint but that the other constraints remain unchanged. a. If there is no required sales mix, what is the optimal production plan? [1.5 marks) b. Using the contribution margin format, build an income statement based on this optimal production plan. Indicate the income in your executive summary; and put the statement in appendix ofyour report. 'r'our income statement should show the contribution margin of each product. {1 mark] Willett Limited Willett Limited manufactures three products with the characteristics shown in the following table. Product 2 3 Total Selling Price (per unit) 550 $30 $80 Variable Cost (per unit) 20 12 50 Required Sales Mix 30% 60% 10% Maximum Sales (units) 100,000 200,000 50,000 Use of capacity (hours) 2 1.5 3 Total Capacity Hours Available 455,000 Total Fixed Costs $4,000,000
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