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Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 17,380 machine hours per month. Lakeside estimates April
Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 17,380 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows:
Product A | Product B | |||||
April demand | 4,800 | units | 3,800 | units | ||
Contribution margin | $ | 762 | per unit | $ | 680 | per unit |
Required machine hours | 3 | per unit | 2 | per unit | ||
Required: Determine how many units of each product Lakeside should produce to maximize contribution margin in April.
Product A | Product B | |||
Product mix for April production | units | units |
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