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Bush Manufacturing has the following labor hours available for producing M and N: 26,000 Total Direct labor hours available Consider the following information: M N
Bush Manufacturing has the following labor hours available for producing M and N: | 26,000 | Total Direct labor hours available | |||
Consider the following information: | |||||
M | N | ||||
Required Labor per unit in hours | 3 | 2 | |||
Maximum demand in units | 8,000 | 7,000 | |||
Contribution Margin per unit | 9 | 8 | |||
Required: | |||||
What is the optimal product mix(how many M and N should be produced)? Explain your answer and show computations. |
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