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Giant Inc. has 3,600 machine hours available each month. The following information on the company's three surgical kits is available: Surgical Kit 1 Surgical Kit
Giant Inc. has 3,600 machine hours available each month. The following information on the company's three surgical kits is available:
Surgical Kit 1 | Surgical Kit 2 | Surgical Kit 3 | |||||||||
Contribution margin per unit | $ | 5.00 | $ | 4.00 | $ | 2.50 | |||||
Machine hours per unit | 2 | 1 | 3 | ||||||||
Sales demand in units | 1,000 | 800 | 900 | ||||||||
Required: a. What production schedule will maximize the company's profits? b. What will be the maximum possible contribution margin?
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