Salmon Fishing produces two types of fishing lures, Big Blue and Jazzy Capelin, with unit contribution margins of $14 and $8 respectively.Each lure must be notched by a special machine.The firm owns six machines that together provide a maximum of 38,000 machine hours per year.Big Blue requires two machine hours of time, and Jazzy Capelin requires 0.5 hours of machine time.There is also a maximum demand for Big Blue of 40,000 units per year.

Required:

1. What is the Contribution Margin per Machine Hour for each fishing lure?

2. How many of each Big Blue and Jazzy Capelin should be produced to maximize profit?

3. If there were no constraint on demand, how many of each Big Blue and Jazzy Capelin should Salmon Fishing produce?