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MOMA Inc. can produce three different products interchangeably on two machines which have a total availability of 250 hours per month. The accounting department provides

MOMA Inc. can produce three different products interchangeably on two machines which have a total availability of 250 hours per month. The accounting department provides the following information on these products.

ABC
Selling Price per unit$25$35$80
Variable costs per unit$15$20$45
Time required to produce 1 unit6 minutes12 minutes42 minutes
Minimum units that must be produced per month100none140
Maximum unit demand per month200none200

Required:

a) Prepare a production plan that shows how many units of each product should be produced for the period

b) Compute the total contribution margin expected based on the production plan

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