Product Mix Decision, Single Constraint

Sealing Company manufactures three types of DVD storage units. Each of the three types requires the use of a special machine that has a total operating capacity of 15,000 hours per year. Information on the three types of storage units is as follows:

Line Item Description	Basic	Standard	Deluxe
Selling price	$9.00	$30.00	$35.00
Variable cost	$6.00	$20.00	$10.00
Machine hours required	0.10	0.50	0.75

Sealing's marketing director has assessed demand for the three types of storage units and believes that the firm can sell as many units as it can produce.

Required:

1. How many of each type of unit should be produced and sold to maximize the company's contribution margin? If an amount box does not require an entry, leave it blank or enter "0". If required, round your answers to the nearest whole value.

Line Item Description	Answer
Basic
Standard
Deluxe

What is the total contribution margin for your selection? fill in the blank 1 of 1$

2. Now suppose that Sealing Company believes that it can sell no more than 12,000 of the deluxe model but up to 50,000 each of the basic and standard models at the selling prices estimated. What product mix would you recommend? If required, round your answers to the nearest whole value.

Line Item Description	Answer
Basic
Standard
Deluxe

What would be the total contribution margin? fill in the blank 1 of 1$