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The following details are associated with Products A, B, and C: Sales price per unit Variable costs per unit MHs required/unit Units demanded A
The following details are associated with Products A, B, and C: Sales price per unit Variable costs per unit MHs required/unit Units demanded A $116 62 5 2,000 B $106 54 8 6,000 $111 58 4 5,000 If the company only has 50,000 machine-hours available and does not want to produce more than the market demands: a) How many units of Product A, B, and C should be produced? (Each worth 2 points total 6 points) b) What is the maximum total contribution margin that can be achieved? (Worth 6 points)
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