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C,d only I/ I'HUIEKIEIJ wan to stay in Protected View. *f duct A and Product B. Eliza believes the unit contribution margin from Product B

C,d only

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\\I/ I'HUIEKIEIJ wan to stay in Protected View. *f duct A and Product B. Eliza believes the unit contribution margin from Product B is $12, but is uncertain about the unit contribution margin from Product A. She estimates that the unit contribution margin of Product A is either $0 or $20, which each being equally likely. Both products are processed on a single machine, which has \"ml capacity of 900 hours. Each unit of Product A requires 5 hours on the machine, while each unit of Product B requires 4 hours on the machine. Both products also require safety testing, and there are a total of 900 hours available for safety testing. Each unit of Product A requires 4 hours of safety testing, while each unit of Product B requires 5 hours of safety testing. - Using Solver, What product mix will maximize total contribution margin? - ay a consultant to obtain perfect information about b. What is the most that Eliza is willing to p akjng the product mix decision? Product A's unit contribution margin prior to m 0. Let's expand the scenario such that Eliza is going to make a promezt mix decision in each of t_v_v_0_ periods. Assume the machine has capacity of 900 hours in each perioda and safety testing capacity of 900 hours in each period. At the start of period 1, Eliza is still uncertain about whether Product A's unit contribution margin is $0 or $20. But, suppose Eliza could obtain ' out Whether Product A's unit contribution margin is $0 or $20 in ' 50 units of Product A in period 1. Should Eliza do this? ries to maximize total contribution in period 1 even if she In your analysis, assume Eliza still t ct A in period 1 to learn whether Product A's unit decides to produce 50 units of Produ contribution margin is $0 or $20 in period 2. d. In part c, you are evaluating whether it is worthwhile for Eliza to produce 50 units of Product A in period 1 to learn about that product's unit contribution margin in period 2. What is the maximum number of units of Product A that Eliza would be willing to produce in period 1 to learn about Product A's unit contribution margin in period 2

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