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Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has a shortage of machine hours
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company currently has a shortage of machine hours since one of its two machines is down; only 360 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Variable cost per unit Machine hours per unit Demand (units) Required: Large Mouth (Product A) $ 23.00 Small Mouth (Product B) $ 9.00 Mini Mouth (Product C) $ 29.00 $ 12.50 0.75 348 $ 5.00 0.25 448 $ 14.00 1 164 a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced while the machine is down to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? Complete this question by entering your answers in the tabs below. Required A Required B Required C In what order should Pasadena prioritize production of the products? < Required A Required B >
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