NAME: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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Francorp sells two products, M and N$.$ Selected data is shown below.

M N

Selling Price per unit $$80$ $$60$

Less Variable Expenses per unit $$46$ $$40$

Contribution Margin per unit $$34$ $$20$

Current Demand per week $($units$)2,1002,400$

Processing time required on machine XYZ per unit $2$ minutes $1$ minute

Additional Information:

$$ Machine XYZ is a constrained resource and is being used at $100\%$ capacity

$$ Machine XYZ has a capacity of $3,000$ minutes per week

$($a$)$ Which product should Francorp focus on$?$ Show all work and calculations to back up your answer.

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$($b$)$ Assuming Francorp wants to maximize its total contribution margin, how much of each product should it produce? Show all work and calculations to back up your answer.

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$($c$)$ Assuming Francorp follows its production plan from part $($b$),$ determine its total contribution margin.

Show all work and calculations to back up your answer.

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