Long Company makes three types of plastic garbage containers. Each of the three types of cans requires the use of a special machine that has total operating capacity of 204,000 hours per year. Information on each of the three products is as follows:

Basic standard deluxe

selling price $12 $17 $27

unit variable cost $6 $8 $12

machine hours required 0.15 0.25 0.75

1. How many of each product should be sold to maximize total contribution margin? What is the total contribution margin for this product mix?

number of units basic?

number of units standard?

number of units deluxe?

total contribution margin for this product mix?

2. Suppose that Long can sell no more than 800,000 units of each type at the prices indicated. What product mix would you recommend, and what would be the total contribution margin?

number of units basic?

number of units standard?

number of units deluxe?

total contribution margin for this product mix?