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BaGuo Corporation makes production for various kitchen tools. They have total of 800 hours in September 2021 is available per month for this operation.
BaGuo Corporation makes production for various kitchen tools. They have total of 800 hours in September 2021 is available per month for this operation. Because of COVID 19, they must decrease their productive hours. Data concerning the company's four products appear below: Wok Pan Kettle Pot Monthly demand in units 100 90 120 300 Hours required in operation per unit 1 1.2 0.5 2 Unit contribution margin $16 $30 $10 $30 Variable Expenses $6 $16 $4 $24 No fixed costs could be avoided by modifying how many units are produced of any product or even by dropping any one of the products. Within this month, calculate the contribution margin and what should BaGuo Corporation do if they want to get optimum margin? Please explain the result!
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