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Orange Co. manufactures 3 products. Budgeted data for the upcoming year is as follows: A4 B5 C6 CM/Unit $167 $93 $126 Direct labour hours per
Orange Co. manufactures 3 products. Budgeted data for the upcoming year is as follows:
|
| A4 | B5 | C6 |
| CM/Unit | $167 | $93 | $126 |
| Direct labour hours per unit | 5.47 | 4.47 | 3.11 |
|
| |||
| Maximum expected demand | 128 | 261 | 314 |
Orange Co. is limited to 1200 hours of direct labour in a given year. How many units of product A4 should be produced to maximize contribution margin?
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