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roblem 8-62 Product Mix Decision, Single Constraint Cealing Company manufactures three types of DVD storage units. Each of the three types re- s the use
roblem 8-62 Product Mix Decision, Single Constraint Cealing Company manufactures three types of DVD storage units. Each of the three types re- s the use of a special machine that has a total operating capacity of 15,000 hours per year. qui re ation on the three types of storage units is as follows Basic $9.00 $6.00 0.10 Standard $30.00 $20.00 Deluxe $35.00 $10.00 0.75 Selling price Variable cost Machine hours required 0.50 arketing director has assessed demand for the three types of storage units and believes that the firm can sell as many units as it can produce. Required: 1. How many of each type of unit should be produced and sold to maximize the company's 2. Now suppose that Sealing Company believes that it can sell no more than 12,000 of contribution margin? What is the total contribution margin for your selection? the deluxe model but up to 50,000 each of the basic and standard models at the selling prices estimated. What product mix would you recommend, and what would be the total contribution margin
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