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Chris' Appliances Company manufactures two types of coffee makers: the French Press and the Americano Brewer. The following data are available: French Presses $100 Sales
Chris' Appliances Company manufactures two types of coffee makers: the French Press and the Americano Brewer. The following data are available: French Presses $100 Sales price Variable costs Americano Brewers $200 $150 1 $30 The company can manufacture three French Presses per machine hour and two Americano Brewers per machine hour. The company's production capacity is 1,200 machine hours per month. REQUIRED: 1. What is the contribution margin ratio for French Presses and Americano Brewers at the Chris' Appliances Company? (2 marks) 2. What is the contribution margin per machine hour for Americano Brewers at the Chris' Appliances Company? (1 mark) 3. What is the contribution margin per machine hour for French Presses at the Chris' Appliances Company? (1 mark) 4. If there is unlimited demand, to maximize profits, how many units of each product should Chris' Appliances Company produce in a month? (2 marks) 5. If the demand for both the French Presses and the Americano Brewers is 3,000 units per month, how many units of each product should Chris' Appliances Company produce in a month? (2 marks)
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