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Mini-Exercise 16-5 (Static) The Product Mix Decision LO 2, 3 Lakeside Inc. produces Product A and Product B that require special machining time. Machine
Mini-Exercise 16-5 (Static) The Product Mix Decision LO 2, 3 Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 10,000 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows: April demand Product A 3,000 units Product B 2,000 units Contribution margin Required machine hours $ 600 per unit 3 per unit $ 500 per unit 2 per unit Required: Determine how many units of each product Lakeside should produce to maximize contribution margin in April. Product mix for April production Product A Product B units units
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