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The Tumberland Company produces and sells two products, X and T. The contribution of X is $200.00 The contribution of T is $150.00 The demand
The Tumberland Company produces and sells two products, X and T. | ||||
The contribution of X is | $200.00 | |||
The contribution of T is | $150.00 | |||
The demand for T is limited to | 4,000 | units. | ||
The machine time on resource F is limited to | 3,100 | machine hours | ||
Each unit of X requires | 0.60 | machine hours on resource F | ||
Each unit of T requires | 0.50 | machine hours on resource F | ||
The total labor hours are limited to | 2,300 | |||
Each unit of X requires | 0.35 | labor hours | ||
Each unit of T requires | 0.50 | labor hours | ||
Your goal is to maximize the contribution margin for Tumberland. Create the formula to calculate this, then calculate and graph the 5 points to show the feasibility area, then calculate which blend of products the company should produce. |
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