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The Boulder Company produces three products with the following selling prices and costs: $22 B $21 13 58 Selling price per unit Variable cost per
The Boulder Company produces three products with the following selling prices and costs: $22 B $21 13 58 Selling price per unit Variable cost per unit Contribution margin per unit Direct labour hours per unit Machine hours per unit Sales demand (units) 12 $10 1.6 2. 200 $16 7 $9 1 2 1 640 4 180 The company currently is facing a labour shortage as many of the workers bought a lottery ticket together and won. There are only 1,300 direct labour hours available this month. REQUIRED: a. How many units of each product should be produced in order to maximize income? (7 marks) b. What would be the total contribution margin based on your recommendation? (3 marks) c. Explain a qualitative, non-financial, issue they should consider. (1 mark)
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