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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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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: Y z Selling price $11 $15 $20 Variable mfg. cost $ 5 $ 7 $ 8 Variable selling cost $ 2. $ 3 $ 5 6 10 12 Machine time required (in minutes) Sales demand (in units) 600 500 400 REQUIRED: a. 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? b. Now, assume that 150 machine hours are available per month. Repeat your answers in (1) and (2)

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