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Gamma makes two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium
Gamma makes two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply:
Standard Premium
Contribution margin per unit $18 $20
Number of machine-hours required 3 4
26) The contribution per machine-hour for each model is ________.
27) If there are 600 machine-hours available per week, how many rockers of each model should be produced to maximize profits?
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