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Behar Company makes three types of stainless steel frying pans. Each of the three types of pans requires use of a special machine that has
Behar Company makes three types of stainless steel frying pans. Each of the three types of pans requires use of a special machine that has total operating capacity of 163,200 hours per year.
Basic. Standard Deluxe ___________________________________________
Selling price. 11.94. 16.42. 34.18
Unit variable cost 6.92. 10.02. 16.08
Machine hours 0.10. 0.20. 0.50
The marketing manager has determined that the company can sell all that it can produce of each of the three products.
Suppose that Behar can sell no more than 269000 units of each type at the prices indicated. What product mix would you recommend?
Number of basic units ___269000_
Number of standard units _________
Number of deluxe units ___________
What would be the total contribution margin ________
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