Rollins Company manufactures two productsS500 and T750. The company provided the following information with respect to these products:

	S500	T750
Estimated customer demand (in units)	5,600	4,000
Selling price per unit	$ 2,400	$ 4,200
Variable expense per unit	$ 1,400	$ 2,400

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

	S500 (hours per unit)	T750 (hours per unit)	Capacity (in hours)
Fabrication	1	2	4,000
Molding	2	2	6,000
Machining	2	0	5,000
Assemble & Pack	0	3	4,500

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.

Req 1 Req 2 Req 3a Req 3b to d 1. Assume the company focuses solely on producing S500: a. Which department would be the constraint? (Hint: Focus on each department's capacity (in hours) divided by S500's "hours per unit" within each department.) b. What is S500's contribution margin per hour of the constraining resource that you identified in requirement la? (Hint: Calculate S500's contribution margin per unit and divide it by the "hours per unit for the department you identified in requirement la.) Show less A The constraining department is Product S500's contribution margin per hour is 2. Assume the company focuses solely on producing T750: a. Which department would be its constraint? (Hint: Focus on each department's capacity (in hours) divided by T750's "hours per unit" within each department.) b. What is T750's contribution margin per hour of the constraining resource that you identified in requirement 2a? (Hint: Calculate T750's contribution margin per unit and divide it by the "hours per unit for the department you identified in requirement 2a.) Show less The constraining department is Product T750's contribution margin per hour is 3. Based on the answers to requirements 1 and 2: a. Which product has the highest contribution margin per hour of its constraining resource? The product with the highest contribution margin per hour of its constraining resource is 3. Based on the answers to requirements 1 and 2: b. If the company decided to initiate production by maximizing the output of the product chosen in requirement 3a, then how many units of this product would it be able to make before encountering that product's constraint? C. If the company implemented the production plan in requirement 3b, then how many units of its remaining product could it make with the departmental capacities that are still available? d. What total contribution margin would the company earn if it followed the production plan described in requirements 3b and 3c? Show less units The maximum output is The maximum output is The total contribution margin is units