product mix constraint easy living of charlotte, North Carolina

P8-37B Product mix under constraint (Learning Objective 5) ving of Charlotte, North Carolina, specializes in outdoor furniture and spas. Easy Li Owner Linda Spring is expanding the store. She is deciding which product line to emphasize. To make this decision, she assembles the following data $300 S F,000 Contribueon margin ontribution marginraio fter renovation, the store will have 8,000 square feet of floor space. By devoting Easy Living could display 30 spas. Spring expects monthly sales to equal the maximum number of units displayed. the new floor space to patio sets, Easy Living can display 60 patio sets. Alternatively Limited Resources Assume Fender produces only three guitars: the Stratocaster, Dreadnought and Telecaster. A limitation of 720 labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows Stratocaster Dreadnought Telecaster $600 (300 $300 24 $960 600 $360 36 $1,260 (1.080) $ 180 Labor hours per unit... 36 Required Determine the weekly contribution from each product when total labor hours are allocated to the product with the highest Contribution per labor hour 20 2 Mw