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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.

A B C
Selling price per unit $25 $35 $80
Variable costs per unit $15 $20 $45
Time required to produce 1 unit 6 minutes 12 minutes 42 minutes
Minimum units that must be produced per month 100 none 140
Maximum unit demand per month 200 none 200

Required:

  1. Prepare a production plan that shows how many units of each product should be produced for the period
  2. Compute the total contribution margin expected based on the production plan

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