Question
Bricktan Inc. manufactures three products, basic, classic and deluxe. The maximum that Bricktan can sell is 80,000 basic units, 428,000 classic units and 130,000 luxury
Bricktan Inc. manufactures three products, basic, classic and deluxe. The maximum that Bricktan can sell is 80,000 basic units, 428,000 classic units and 130,000 luxury units. Bricktan has a limited production capacity of 94,000 hours. It can produce 10 units of basic, 8 units of classic and 4 units of luxury per hour. The contribution margin per unit is $15 for the basic, $25 for the classic and $55 for the deluxe.
What is the total contribution margin if Bricktan chooses the most profitable sales mix?
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