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Choosing the Optimal Product Mix with One Constrained Resource Billings Company produces two products, Product Reno and Product Tahoe. Each prodoct goes through its own
Choosing the Optimal Product Mix with One Constrained Resource Billings Company produces two products, Product Reno and Product Tahoe. Each prodoct goes through its own assembly and finiahing departments. Howaver, both of them must go. through the painting dopartment. The painting department has capacity of 2,460 hours per year. Product Reno has a unat contribution margin of 3120 and reques five hours of painting department time. Product Tahoe has a unit contribution margin of $78 and requires three hours of painting department tivie. There are no other constraints. Required: 1. What is the contribution margin per bour of painting department time for each product? 2. What is the optimal mix of products? If an amount is zero, enter " 0 ", 3. What is the total contribution margin earned for the optimal max
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