Metropole Inc.can produce three different products interchangeably on two machines. The accounting department provides the following information on these products: A B C Selling price
Metropole Inc.can produce three different products interchangeably on two machines. The accounting department provides the following information on these products:
A | B | C | |
Selling price per unit | $25 | $35 | $45 |
Variable costs per unit | $15 | $27 | 3$7 |
Units produced per machine hour | 10 | 12 | 14 |
Minimum units produced | 100 | none | 140 |
Maximum units produced | 200 | none | 200 |
The total machine hours available are 100.
Please show your work:
a.Determine the number of machine hours per unit for each product
b.Determine the contribution margin per machine hour for each product
c.Determine how many units of each product should be produced and the total contribution margin
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