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Tomball Co . manufactures two chair models, Standard and Premium. Weekly demand isestimated to be 1 5 0 units of the Standard Model, 1 0
Tomball Co manufactures two chair models, Standard and Premium. Weekly demand isestimated to be units of the Standard Model, units of the Premium Model, and unitsof the Deluxe Model. Only machine hours are available per week. The following per unitdata apply: StandardPremiumDeluxeMaximum demand in unitsCurrent production in unitsContribution margin per unit$$$Number of machine hours requiredRequired: Please answer all the following questions, and show your works and computations to get full credits. a What is the contribution margin per machine hour for each model? b What is the total contribution margin at the current level of production for each model?c Given maximum capacity of machine hours, how many machine hours would you recommend of each model to maximize weekly production profits? How many units of each model?d If there is no limit for machine hours available per week instead of only machine hour per week how many chairs of each model should Katy produce to maximize profits?
Tomball Co manufactures two chair models, Standard and Premium. Weekly demand isestimated to be units of the Standard Model, units of the Premium Model, and unitsof the Deluxe Model. Only machine hours are available per week. The following per unitdata apply: StandardPremiumDeluxeMaximum demand in unitsCurrent production in unitsContribution margin per unit$$$Number of machine hours requiredRequired: Please answer all the following questions, and show your works and computations to get full credits. a What is the contribution margin per machine hour for each model? b What is the total contribution margin at the current level of production for each model?c Given maximum capacity of machine hours, how many machine hours would you recommend of each model to maximize weekly production profits? How many units of each model?d If there is no limit for machine hours available per week instead of only machine hour per week how many chairs of each model should Katy produce to maximize profits?
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