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Lakeside Incorporated produces Product A and Product B that require special machining time. Machine time capacity is 15,740 machine hours per month. Lakeside estimates April
Lakeside Incorporated produces Product A and Product B that require special machining time. Machine time capacity is 15,740 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows:
Product A | Product B | |||
---|---|---|---|---|
April demand | 4,400 | units | 3,400 | units |
Contribution margin | $ 726 | per unit | $ 640 | 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.
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