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T&G Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below: Product A Product

T&G Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below:
Product A Product B Product C Total
Sales $76,000 $104,000 $115,000 $295,000
Variable costs 41,000 69,000 105,000 215,000
Fixed costs 25,900 18,500 18,500 62,900
Total costs 66,900 87,500 123,500 277,900
Operating income (loss) $9,100 $16,500 $(8,500 ) $17,100
The company produces 1,000 units of each product. The companys capacity is 17,000 machine hours. The machine hours for each product are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.

1. The company has a contract that requires it to supply 570 units of each product to a customer. The total market demand for a single product is limited to 1,500 units. How many units of each product should the company manufacture to maximize its total contribution margin including the contract?

T&G Co. should manufacture
Product A

units
Product B

units
Product C

units

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