Question
Micro Corporation manufactures three products: X, Y, and Z with the following characteristics: Product X Product Y Product Z Selling price $ 56 $ 32
Micro Corporation manufactures three products: X, Y, and Z with the following characteristics:
Product X | Product Y | Product Z | |
---|---|---|---|
Selling price | $ 56 | $ 32 | $ 55 |
Variable cost | $ 26 | $ 23 | $ 30 |
Machine hours per unit | 3 | 1 | 5 |
Micro has a capacity of 2,600 machine hours, and the demand for each of the products is 800 units.
In order to maximize total contribution margin, how many units of each product should the company produce?
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