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QUESTION 2: What kind of problem is this? The constraint at Lawson Toy Corporation is time on a cutting machine. The company makes three products

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QUESTION 2: What kind of problem is this? The constraint at Lawson Toy Corporation is time on a cutting machine. The company makes three products that use this machine. Data concerning those products appear below: Teddy Bears Raggedy Ann Dolls Stuffed Dog $19.20 $ 54.27 $22.28 $ 15.87 $42.05 $16.76 Selling Price per unit Variable Cost per Unit Minutes on the cutting machine Expected sales 3.20 8.60 3.60 800 500 900 Required: 1) How many minutes per month would the company need to produce all of the toys they expect to sell? 2) The cutting machine is scheduled for maintenance during October thus reducing the number of minutes available for cutting during the month to 9.600 minutes. Based on your answer to number 1, will Lawson be able to cut all of the necessary pieces to produce their expected sales volume. How many minutes will they be short? 3) Calculate the highest contribution margin the company can expect in October due to this constraint. (Round all mins and dollar amounts to two decimal places. Round all totals to the whole unit.)

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