Fancy Purse, Inc. manufactures two types of handbags, the Clutch and the Tote, with unit contribution margins of $9 and $15, respectively. Regardless of the type, each handbag must go through a stitching machine. The company owns 4 stitching machines and each provides 3,000 hours of machine time per year. Each Clutch handbag requires 12 minutes of machine time and each Tote handbag requires 30 minutes of machine time. There are no other constraints.

Required:

A. What is the contribution margin per hour of machine time for each type of handbag?

B. What is the optimal mix of handbags?

C. What is the total contribution margin earned for the optimal mix?