The management of Lowndes Corporation has provided the following data concerning its two products:

G92X C250 Selling price $176.00 $132.00

Unit variable cost $158.40 $118.80

Constrained resource required for one unit of the product (minutes) 8.0 4.0 Monthly demand (units)

820.0 1,670.0

G92X C250 Selling price $176.00 $132.00 Unit variable cost $158.40 $118.80

Unit contribution margin (a) $17.60 $13.20

Amount of the constrained resource required (b) 8.0 4.0 Profitability Index (a) / (b) $2.20 $3.30

Ranking 2 1

Constrained resource G92X Inc

Constrained resource C250

Total constrained resource available 9,800 Correct Less constrained resource required to produce 1,670 units of C250

Remaining constrained resource available

1. How many units of product G92X should be produced each month? 390.0 units Correct