Question
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Sales Price Variable cost per unit
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Sales Price Variable cost per unit Oxy Sonic Cleaner Cleaner $ 80 $ 46 50 24 Total demand for Oxy Is 11,100 units and for Sonic Is 7,100 units. Machine time is a scarce resource. During the year, 61,000 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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Management and Cost Accounting
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