QUESTION 1

1. Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 715,000 units of Basic, 420,000 units of Classic, and 120,000 units of Deluxe. Bricktan has limited production capacity of 900,000 machine hours. Machine hours per unit are as follows: Basic, 1 hour; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix for Bricktan Incorporated?

   		150,000 Basic, 120,000 Classic and 240,000 Deluxe.
   		71,500 Basic, 420,000 Classic and 240,000 Deluxe.
   		75,000 Basic, 420,000 Classic and 120,000 Deluxe.
   		600,000 Basic, 0 Classic and 120,000 Deluxe.
   		300,000 Basic, 240,000 Classic and 120,000 Deluxe.

QUESTION 2

1. JK Company produces two products, Plush and Supreme. JK Company can sell all of the units it can produce for both products, but it has limited production capacity. Machine hours per unit are .25 hours for Plush and .50 hours for Supreme, and the company has 3,800 machine hours available. Contribution margin per unit is $232 for Plush and $318 for Supreme. What is the total contribution margin if JK chooses the most profitable sales mix?

   		$1,565,600.
   		$3,526,400.
   		$2,705,600.
   		$4,833,600.
   		$3,131,200.