Product Mix Decision, Single Constraint Patz Company makes three types of stainless steel frying pans. Each of the three types of pans requires the use of a special machine that has total operating capacity of 201,150 hours per year. Information on each of the three products is as follows:

Basic Standard Deluxe Selling price $12.52 $17.22 $31.60 Unit variable cost $7.38 $11.48 $13.04

Machine hours required 0.10 0.20 0.50 The marketing manager has determined that the company can sell all that it can produce of each of the three products.

Required: 1. How many of each product should be sold to maximize the total contribution margin? If a product should not be produced at all, enter "0" for your answer. Number of basic units: fill in the blank 1 Number of standard units: fill in the blank 2 0 Number of deluxe units: fill in the blank 3 0 What is the contribution margin per machine hour for each of these products? If required, round your answers to the nearest cent. Basic units: $fill in the blank 4 51.40 per machine hour Standard units: $fill in the blank 5 28.70 per machine hour Deluxe units: $fill in the blank 6 37.12 per machine hour What is the total contribution margin for this product mix? $fill in the blank 7 2. Suppose that Patz can sell no more than 332,000 units of each type at the prices indicated. What product mix would you recommend? Number of basic units: fill in the blank 8 332,000 Number of standard units: fill in the blank 9 Number of deluxe units: fill in the blank 10 What would be the total contribution margin? $fill in the blank 11