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Filing Company manufactures three types of filing storage units. Each of the three types requires the use of a special machine that has a total
Filing Company manufactures three types of filing storage units. Each of the three types requires the use of a special machine that has a total operating capacity of 15,000 hours per year. Information on the three types of storage units are as follows: Selling price Variable cost Machine hours required Basic $9 $6 0.10 Standard $30 $20 0.50 Deluxe $35 $10 0.75 Required 1. Assume that the marketing director has determined that the company can sell as many units as it can produce of any of the three storage types Determine how many units of each type of unit should be produced and sold to maximize the company's contribution margin. Show numbers to support your determination. What is the total contribution margin for your selection? 2. Assume that the marketing director has determined that the company can sell no more than 12,000 units of the deluxe model but up to 50,000 units of the basic and standard model. Determine how many units of each type of unit should be produced and sold to maximize the company's contribution margin. Show numbers to support your determination. What is the total contribution margin for your selection
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