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Conroy Company manufactures two productsB100 and A200. The company provided the following information with respect to these products: B100 A200 Estimated customer demand (in units)

Conroy Company manufactures two productsB100 and A200. The company provided the following information with respect to these products:

B100 A200
Estimated customer demand (in units) 2,800 2,000
Selling price per unit $ 1,200 $ 2,100
Variable expenses per unit $ 700 $ 1,200

The company has four manufacturing departmentsFabrication, Molding, Machining, and Assemble & Pack. The capacity available in each department (in hours) and the demands that one unit of each of the companys products makes on those departments is as follows:

B100 (hours per unit)

A200 (hours per unit) Capacity (in hours)
Fabrication 1 2 4,000
Molding 2 2 6,000
Machining 2 0 5,000
Assemble & Pack 0 3 4,500

The company is trying to decide what product mix will maximize profits. Given that its fixed costs will not change regardless of the chosen mix, the company plans to identify the product mix that maximizes its total contribution margin.

a. Which department would be its constraint?

b. What is A200s contribution margin per hour of the constraining resource that you identified in requirement 2a?

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