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Conroy Company manufactures two products$$B$100$ and A$200.$ The company provided the following information with respect to these products:

B$100$ A$200$

Estimated customer demand $($in units$)2,8002,000$

Selling price per unit $ $1,200$ $ $2,100$

Variable expenses per unit $ $700$ $ $1,200$

The company has four manufacturing departments$$Fabrication$,$ Molding, Machining, and Assemble & Pack. The capacity available in each department $($in hours$)$ and the demands that one unit of each of the company$$s products makes on those departments is as follows:

B$100$

$($hours per unit$)$

A$200$

$($hours per unit$)$ Capacity

$($in hours$)$

Fabrication $124,000$

Molding $226,000$

Machining $205,000$

Assemble & Pack $034,500$

The company is trying to decide what product mix will maximize profits. Given that its fixed costs will not change regardless of the chosen mix, the company plans to identify the product mix that maximizes its total contribution margin.

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$7.$ In the Excel template, navigate to the $$Requirement $7$ tab. Assume that Conroy is considering raising the price of B$100$ to $$1,400.$ The company believes that the price increase would drop maximum customer demand from $2,800$ units to $2,600$ units.

a$.$ If Conroy implements the price increase, which product would have the highest contribution margin per unit of its constraining resource?

b$.$ If the company decided to initiate production by maximizing the output of the product chosen in requirement $7$a$,$ then how many units of this product would it be able to produce before encountering that product$$s constraint?

c$.$ If the company implemented the production plan in requirement $7$b$,$ then how many units of its remaining product could it produce with the capacity that is still available?

d$.$ What total contribution margin would the company earn if it followed the production plan described in requirements $7$b and $7$c$?$