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Please show all workings The Dash Company manufactures two products: A and B. Information about the products is as follows: Product A Product B Revenue
Please show all workings
The Dash Company manufactures two products: A and B. Information about the products is as follows: Product A Product B Revenue per unit $150 $125 Variable costs per unit 80 70 Contribution margin per unit $ 70 $ 55 Total demand 15,000 units 12,000 units Machine hours per unit 0.5 MH 0.25MH There are 5,000 machine hours available during the quarter. REQUIRED 1. Which of the products should Dash Company produce if it can only produce one of the products? (5 marks) 2. Assume that Dash Company uses half of the hours available to produce Product A and half of the hours available to produce Product B. What is the Dash's total contribution margin? (7 marks) 3. Assume that Dash Company produces the product mix that will maximize profit. What is Dash's total contribution margin (8 marks)Step by Step Solution
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