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Help with how to show work/computations on a,b,c,d Texas Co. manufactures three models, Standard, Premium, and Deluxe. Estimated monthly demand and production volume for each
Help with how to show work/computations on a,b,c,d
Texas Co. manufactures three models, Standard, Premium, and Deluxe. Estimated monthly demand and production volume for each modelis provided in the following table. Only 650 machine hours are available per month. The following per unit data apply Standard Premium Deluxe Maximum demand in unit) 500 150 50 400 50 Current production in Contribution margin erunt 150 $80 350 $70 Number of machine hours med 2 Required) Please answer all the following questions, and show your works and computations to get full credits What is the total contribution margin at the current level of production for each model? b. What is the contribution margin per machine hour for each model? c. Given maximum capacity of 650 machine hours, how many machine hours would you recommend of each model to maximize weekly production profits? How many units of each model? d. If there is no limit for machine hours available per week (instead of only 650 machine hour per week), how many chairs of each model should Katy produce to maximize profits Step by Step Solution
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