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CSUCI Company produces and sells five products; V, W, X, Y and Z. The following data relate to its five products: V W X Y
CSUCI Company produces and sells five products; V, W, X, Y and Z. The following data relate to its five
products:
V
W
X
Y
Z
Monthly demand in units
80
60
40
90
50
Selling price per unit
230
$
70
$
100
$
80
$
90
$
Variable costs per unit
110
$
37
$
64
$
44
$
27
$
Total fixed costs
$100,000
Labor time in hours per unit
1.2
0.3
0.6
0.4
0.9
There are a total of 201 labor hours available per month.
Required:
Determine the product mix to maximize total contribution margin.
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