Franzy Co makes three products, all of which require the use of a special machine Only 100 hours of machine time are available per month Data for the three products are as follows X Y Z Selling price $11 $15 $20 Variable mfg cost $ 5 $ 7 $ 8 Variable selling cost $ 2 $ 3 $ 5 Machine time required (in minutes) 6 10 12 Sales demand (in units) 600 500 400 REQUIRED Given the capacity constraint of 100 machine hours, (1) which product(s) should be made to maximize the profit How many and (2) What will be total contribution margin Now, assume that 150 machine hours are available per month Repeat your answers in (1) and (2)

Question

Franzy Co  makes three products, all of which require the use of a special machine  Only 100 hours of machine time are available per month  Data for the three products are as follows  X Y Z Selling price $11 $15 $20 Variable mfg  cost $ 5 $ 7 $ 8 Variable selling cost $ 2 $ 3 $ 5 Machine time required (in minutes) 6 10 12 Sales demand (in units) 600 500 400 REQUIRED  Given the capacity constraint of 100 machine hours, (1) which product(s) should be made to maximize the profit  How many  and (2) What will be total contribution margin  Now, assume that 150 machine hours are available per month  Repeat your answers in (1) and (2)

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Franzy Co. makes three products, all of which require the use of a special machine. Only 100 hours of machine time are available per month.

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