Katy Company manufactures three product models, Standard, Premium, and Deluxe. The following is the data for each product per week.

	Standard	Premium	Deluxe	Total
Maximum weekly demand (in units)	300	250	200	750	units
Current weekly production (in units)	200	200	200	600	units
Contribution margin per unit	$40	$45	$60
Number of machine hours required	2	3	5
Maximum Machine hours per week				2,000	hours

Required)

a) What is the contribution margin per machine hour for each model? (10 points)

b) What is the total contribution margin at the current level of production for each model? (5 points)

c) Given maximum capacity, how many units of chairs of each model to be produced to maximize profits? (5 points)

d) If there is no limit for machine hours available, how many chairs of each model should the company produce to maximize profits? (5 points)

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