Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ramsay Appliances manufactures three different products: stoves, ovens, and refrigerators. Product information is provided below. Stove Oven Refrigerators Unit Selling Price $600 $860 $1,800 Unit
Ramsay Appliances manufactures three different products: stoves, ovens, and refrigerators. Product information is provided below. Stove Oven Refrigerators Unit Selling Price $600 $860 $1,800 Unit Costs: Variable Manufacturing $240 $480 $1,200 Fixed Manufacturing $60 $150 $320 Fixed Selling and Admin $100 $40 $150 Unit Profit $200 $190 $130 Monthly Demand in Units 120 80 140 Machine-hours per unit 20 10 25 The maximum machine-hours available are 4.000 per month. $190 $130 Unit Profit $200 Monthly Demand in Units 120 80 140 Machine-hours per unit 20 10 25 The maximum machine-hours available are 4,000 per month. How many of each product should be produced per month in order to maximize the contribution margin? 25 stoves:0 ovens; 140 refrigerators stoves: 50 ovens 140 refrigerators O 120 stoves; 80 ovens: 32 refrigerators O O stoves: 80 ovens: 128 refrigerators
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started