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Tampa Company makes two models of its hair dryer. The copper-winding machine has been the production constraint as it is useable only 9,600 minutes per
Tampa Company makes two models of its hair dryer. The copper-winding machine has been the production constraint as it is useable only 9,600 minutes per month. Data concerning these two products appear below: Standard Premium Selling price $14.00 $20.00 Variable cost .00 8.00 Contribution margin 9.00 12.00 Machine time per unit .5 minutes .6 minutes Monthly demand 12,000 units 8,000 units Required: a} Does product demand really exceed machine capacity? 0) Determine the coniIibution margin per minute for each product. c] How many units of each product should be made to maximize net operating income
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