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EB 1 2 . LO 1 0 . 6 Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes

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EB12. LO 10.6 Power Corp. makes 2 products: blades for table saws and blades for handsaws.
Each product passes through the sharpening machine area, which is the chief constraint during
production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution
margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have
a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours
available on the sharpening machine to service a minimum demand for each product of 4,000
units, how many of each product should be made?
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