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The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Oxy Cleaner Sonic Cleaner Sales Price $
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
Oxy Cleaner | Sonic Cleaner | |||||
Sales Price | $ | 80 | $ | 48 | ||
Variable cost per unit | 30 | 20 | ||||
Total demand for Oxy is 10,700 units and for Sonic is 6,700 units. Machine time is a scarce resource. During the year, 57,000 machine hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 2.0 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year?
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