BUT, IF DEMAND IS LIMITED TO 500 UNITS OF EACH PRODUCT LINE,WHAT HAPPENS? - We still have the constraint of 6,000lbs. of DM. - We would make 500 units of X. That would generate $27,000 of CM and use up I,500 lbs. of DM. We would have 4,500lbs. left. - We would then make 500 units of Z. That would generate $30,000 of CM and use 2,000lbs. of DM. We would then have 2,500 left. - We would then make 250 units ofY. That is all we have DM to make. That would generate $15,000 of CM and use up all the DM. - The production mix would be 500X+500Z+250Y and the total CM would be $82,000. BUT, IF DEMAND IS LIMITED TO 500 UNITS OF EACH PRODUCT LINE,WHAT HAPPENS? - We still have the constraint of 6,000lbs. of DM. - We would make 500 units of X. That would generate $27,000 of CM and use up I,500 lbs. of DM. We would have 4,500lbs. left. - We would then make 500 units of Z. That would generate $30,000 of CM and use 2,000lbs. of DM. We would then have 2,500 left. - We would then make 250 units ofY. That is all we have DM to make. That would generate $15,000 of CM and use up all the DM. - The production mix would be 500X+500Z+250Y and the total CM would be $82,000