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Consider the following production and cost data for two products, Avery and Jack: Product Avery Contribution margin per unit $98 Machine minutes needed per unit
Consider the following production and cost data for two products, Avery and Jack:
Product Avery
Contribution margin per unit $98
Machine minutes needed per unit 7.5 minutes
Current demand for product 3,000 minutes
Product Jack
Contribution margin per unit $124
Machine minutes needed per unit 10 minutes
Current demand for product 3,000 units
A total of 37,500 machine minutes are available each period. What is the largest possible total contribution margin that can be realized each period?
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