Extension Exercise - Product Mix DecisionsA manufacturer has a choice of making three products, Alpha, Beta or Delta. Due to a temporary constraint of available machine hours (MHs) in the plant due to maintenance, only 1240 Machine Hours will be available per week for the next few months. The manager has asked if there is any way they can maximize returns to the company (CONTRIBUTION MARGIN - CM) by limiting which units to produce during this time. Known/regular demand for the Alpha, Beta and Delta products are 100, 200 and 100 respectively.Required:Utilise your knowledge of product mix to maximize CM by working out which products to make in order of priority.The sell price and costs associated along with the machine hours are listed below:

MHs Available Alpha Beta Delta Sell Price $100.00 $120.00 590.00 Variable production $50.00 $40.00 $30.00 costs: Contribution margin (SP-VC) Machine hours to 4 MH 4 MH 6 MH produce CM/ MH Un /MH /MH S /MH Demand 100 200 100 Limited hours to 1240 Demand Units made first MHs Used Remaining MHs Units made second MHs Used Remaining MHs Units made third MHE Used