Part B: Total Blast Company (TBC) manufactures two products: Aristoplast and Bominocide. TBC could not satisfy the demand for both products because machine hours are limited to 5,000 machine hours for each quarter. Information about the products is as follows: Aristoplast Bominocide Revenue per unit $150 $125 Variable costs per unit 80 70 Contribution margin per unit $ 70 $ 55 Total demand (per quarter) 15,000 units 12,000 units Machine hours per unit 0.5 MH 0.25 MH

Required:

1. Which of the products should TBC produce if it can only produce one of the products? Show all calculations necessary to prove your answer.

2. Assume that TBC uses half of the hours available to produce Aristoplast and half of the hours available to produce Bominocide. What is TBC's total contribution margin?

3. Assume that TBC produces the product mix that will maximize profit. What is TBC's total contribution margin?