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New Year Pyrotechnics (NYP) is a fireworks manufacturing company, Annual celebrations are rapidly approaching, and NYP has only 50 pounds of powder left. NYP manufactures

New Year Pyrotechnics (NYP) is a fireworks manufacturing company, Annual celebrations are rapidly approaching, and NYP has only 50 pounds of powder left. NYP manufactures three types of fireworks: Aerials, Grounders, and Poppers. The following information shows the information regarding the production and sale of the fireworks:

Aerials Grounders Poppers

Pounds of Powder per Unit 2 lbs. 0.75 lbs 0.25 lbs

Contribution Margin per Unit. $30 $10.5 $4

1) Which firework gives NYP the highest contribution margin per pound of powder?

2) Suppose the market demands for Aerials, Grounders, and Poppers are 20 units, 40 units, and 80 units, respectively. How many units of Aerials, Grounders, and Poppers should NYP produce to maximize profit?

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