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Problem # 3 Metropole Inc. can produce three different products interchangeably on two machines which have a total availability of 100 per period. The accounting

Problem # 3

Metropole Inc. can produce three different products interchangeably on two machines which have a total availability of 100 per period. The accounting department provides the following information on these products.

A

B

C

Selling price per unit

$25

$35

$45

Variable costs per unit

$15

$27

$37

Time required to produce 1 unit

6 minutes

12 minutes

15 minutes

Minimum units that must be produced

100

none

140

Maximum demand

200

none

200

Required:

Determine how many units of each product should be produced for the period and the total contribution margin.

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