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Office Essentials, Inc. produces 3 different cases that all require the use of a specialty plastic to produce the cases. Information on each product follows.
Office Essentials, Inc. produces 3 different cases that all require the use of a specialty plastic to produce the cases. Information on each product follows. Computer Case Overnight Case Attach Case Selling Price $120 $100 $ 140 Direct Material Costs 15 20 15 Other Variable Costs 24 40 Contribution Margin 81 53 85 The company believes that it can sell 1,000 cases of each type of cases each month. Due to a strike, the specialty plastic is in short supply. The company can receive 4.000 pounds of the specialty plastic each month. Based on a price of $5.00 per pound of specialty plastic, what quantity of each case should be produced to maximize profits
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