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Fairway Inc. can produce three different products interchangeably on two machines. The accounting department provides the following information on these products: Selling price per unit
Fairway Inc. can produce three different products interchangeably on two machines. The accounting department provides the following information on these products: Selling price per unit Variable costs per unit Units produced per machine hour Minimum units produced Maximum units produced Product X $25 $15 10 100 200 Product Y $35 $27 12 Product Z $45 $37 14 140 200 none none The total machine hours available are 100. Required: a. Determine the number of machine hours per unit for each product. (Round to two decimal points) b. Determine the contribution margin per machine hour for each product. c. Determine how many units of each product should be produced and the total contribution margin
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