Question
GAME Enterprises manufactures three computer games called Rocket Star, Game Master, and Rock Warrior. The product line data follow. The current production capacity is 100,000
GAME Enterprises manufactures three computer games called Rocket Star, Game Master, and Rock Warrior. The product line data follow.
The current production capacity is 100,000 machine hours.
1. Which computer game should be manufactured first?
Which should be manufactured second?
Which last?
2. How many of each type of computer game should be manufactured and sold to maximize the company's contribution margin based on the current production activity of 100,000 machine hours? What is the total contribution margin for that combination? List the games, in the order entered in requirement 1.
| Rocket Star | Game Master | Rock Warrior | ||||
| Current unit sales demand | 20,000 | 30,000 | 18,000 | |||
| Machine hours per unit | 2.0 | 1.0 | 2.5 | |||
| Selling price per unit | $20.00 | $16.00 | $30.00 | |||
| Unit variable manufacturing costs | $12.50 | $10.00 | $18.75 | |||
| Unit variable selling costs | $6.50 | $5.00 | $6.25 | |||
| Units to Manufacture | Contribution Margin | |||||
| $ | ||||||
| $ | ||||||
| $ | ||||||
| Total contribution margin | $ |
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