Taco Company manufactures three products. Each of the three types requires the use of a special machine that has a total operating capacity of 15,000 hours per year. Information on the three types of products is as follows:

X Y Z Selling price

$9.00 $30.00 $35.00 Variable cost

$6.00 $20.00 $10.00 Machine hours required

0.10 0.50 0.75 Taco Company's marketing director has assessed demand for the three types of products 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 contribution margin? What is the total contribution margin for your selection?

2. Now, suppose that Taco Company believes that it can sell no more than 12,000 of the Z but up to 30.000 each of the X and Y at the selling prices estimated. What product mix would you recommend, and what would the total contribution margin be?