Joe Green Enterprises has met all production requirements for the current month and has an opportunity to produce additional units of product with its excess capacity. Unit selling prices and costs for three models of one of its product lines are as follows:

	NoFrills	Standard	Super
Selling Price	35.00	45.00	65.00
Direct materials	10.00	12.00	14.00
Direct Labor (at P15/hr.)	7.50	12.00	21.00
Variable Overhead	4.00	6.40	11.20
Fixed Overhead	3.00	5.00	5.00

Variable overhead is charged to products based on direct labor cost, and fixed overhead is charged to products based on machine hours.

QUESTIONS:

1. If Joe Green Enterprises has excess machine capacity and can add more labor as needed, the excess production capacity should be devoted to producing which product or products? (#1) _____________________

2. 2. If Joe Green Enterprises has excess machine capacity and but a limited amount of labor time, the production capacity should be devoted to producing which product or products? (#2) _____________________

3. 3. If Joe Garden has a total of 1200 extra hours available and the quantity demanded for each product are as follows: NoFrills: 800 units; Standard: 1200 units; Super: 1500 units - the number of units to be produced for each product will be as follows:

NoFrills: (#3) ____________________

Standard: (#4) ___________________

Super: (#5) _____________________

The optimal contribution margin for this product combination will be (#6) ____________________