Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,950 production hours available. Contribution margin is $6 for product X and $5 for product Y. 1. Calculate contribution margin per production hour.

Contribution Margin per Production Hour
	Product X	Product Y
Contribution margin per production hour

2. What is the most profitable sales mix for this Company?

Allocate 24% its production capacity to Product Y

Allocate all of its production capacity to Product Y

Allocate 40% its production capacity to Product X

Allocate all of its production capacity to Product X