Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom, Inc. produces three types of balloonssmall, medium, and largewith the following characteristics: Small Medium Large Selling price per unit $6 $8 $10 Variable cost

Blossom, Inc. produces three types of balloonssmall, medium, and largewith the following characteristics:

Small Medium Large

Selling price per unit $6 $8 $10

Variable cost per unit 3 5 6

Contribution margin per unit $3 $3 $4

Machine hours per unit 1 2.4 3

Demand in units 540 1,100 950

The company has only 2,000 machine hours available each month.

How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.)

Units

Small

Medium

Large

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Industrial Relations in Canada

Authors: Fiona McQuarrie

4th Edition

978-1-118-8783, 1118878396, 9781119050599 , 978-1118878392

Students also viewed these Accounting questions

Question

What role do hormone levels play in mood?

Answered: 1 week ago