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QUESTION: Ava Inc. manufactures hot dogs (Dogs) and hamburgers (Burgs). Each product must be steamed in a cooker in the steaming department. Total hours available

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QUESTION: Ava Inc. manufactures hot dogs (Dogs) and hamburgers (Burgs). Each product must be steamed in a cooker in the steaming department. Total hours available for the steaming department for both products is 960 hours. There are no other constraints in the production process. The following information is available for both products: "Dogs" "Burgs" Contribution margin per unit $1.50 $4.00 Time required to steam one unit (hours) 0.05 hours 0.10 hours Using the above information answer the following questions. What is the contribution margin per hour of steaming department time for the "Dogs"? What is the contribution margin per hour of steaming department time for the "Burgs"?What is the contribution margin per hour of steaming department time for the "Dogs"? What is the contribution margin per hour of steaming department time for the "Burgs"? A/ Determine the optimal product mix. Given your calculations, how many units of "Dogs" should the company produce? A/ Given your calculations, how many units of "Burgs" should the company produce? A/ What is the total contribution margin earned for the optimal product mix? 12

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