Question
The Grand Company produces three products with the followings costs & selling price: Product Name Large Medium Small Selling Price per unit $15 20
The Grand Company produces three products with the followings costs & selling price: \
Product Name Large Medium Small Selling
Price per unit $15 20 20
Variable cost per unit 8 10 12
Machine Hours per unit 3.5 2 2.5
Grand has a limit of 20,000 machine hours available per month. The company has a monthly fixed cost $50,000. If there is virtually unlimited demande for each of the products, what is the maximum monthly profit? If the demand for each of the products is 3000 units per month what is the maximum monthly contribution margin that can be realized by the company.
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