Question
Brooks Corporation produces three products -- X, Y, & Z -- with the following characteristics: ....................................................X............... y...................... z Selling price per unit .............$20 100% ....$16
Brooks Corporation produces three products -- X, Y, & Z -- with the following characteristics: ....................................................X............... y...................... z Selling price per unit .............$20 100% ....$16 100% $15 100%
Variable cost per unit ............12 60%..... 12 75% ...............6 40%
Contribution margin per unit ...8 40%.... 4 25% .....9 60%
Machine Hours per unit................... 5............... 3................. 6 The Company has only 2,610 machine-hours available each month. Monthly demand for Product X, Y and Z is 450, 1,250 and 400, respectively. What is the optimal monthly contribution margin of the Company?
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