Question
Charles Co produces two: A & B. Each products has demand for 2,011 unit sales per month. Following is information for each of these products:
Charles Co produces two: A & B. Each products has demand for 2,011 unit sales per month.
Following is information for each of these products:
|
| Product A | Product B |
| Selling price per unit | $25 | $16 |
| Variable cost per unit | 15 | 12 |
| Contribution margin per unit | $10 | $4 |
| Machine minutes per unit | 120 minutes | 30 minutes |
Charles Co has 2,000 machine hours available each month. Demand exceeds Charles Co's capacity to produce both products. In order to maximize the companys total contribution margin, how many units of A should Charles Co. produce each month?
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The Corporate Culture Audit
Authors: Nigel Bristow, Sarah J. Sandberg
1st Edition
095597075X, 978-0955970757
