Question
Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all
Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows.
Product | ||||||
Economy | Standard | Deluxe | ||||
Selling price | $43 | $72 | $144 | |||
Variable costs and expenses | $23 | $29 | $66 | |||
Machine hours required | 0.5 | 0.8 | 1.6 |
Calculate contribution margin per unit.
Product | ||||||
Economy | Standard | Deluxe | ||||
Contribution margin per unit | $ | $ | $ |
eTextbook and Media
Ignoring the machine time constraint, which single product should Tanek Industries produce? EconomyStandardDeluxe
eTextbook and Media
What is the contribution margin per unit of limited resource for each product? (Round answers to 2 decimal places, e.g. 10.50.)
Economy | Standard | Deluxe | ||||
Contribution margin per limited resource | $ | $ | $ |
eTextbook and Media
If additional machine time could be obtained, how should the additional time be used? The additional time should be used to produce the DeluxeEconomyStandard product.
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