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M & M Corporation produces and sells three products. The company has a total monthly fixed expenses of $180,000. Following are sales and production
M & M Corporation produces and sells three products. The company has a total monthly fixed expenses of $180,000. Following are sales and production data of the company: Monthly Sales Demand Product Selling Price per Unit Contribution Margin Ratio Machine-hour Required per Unit A $100 30% 7.5 2,000 units $150 $120 25% 12.5 4,000 units 20% 12 1,000 units B C For the coming month the company is expecting only 65,000 machine-hour to produce their products due to machine maintenance. Required: How many units of each product should be produced and sold in order to get maximum profit, and How much should be the net income from your decision (show computation)?
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