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TUBA, Inc. is able and willing to sell TONE, Ltd. up to 4000 pounds of material N which TONE uses in all three products that

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TUBA, Inc. is able and willing to sell TONE, Ltd. up to 4000 pounds of material N which TONE uses in all three products that it makes, NOISE, NOTE and NUMB. TONE needs 4 pounds of N to make NOISE; 3 pounds of N to make NOTE and 2 pounds of N to make NUMB. TONE has demand of 600 units of NOISE at a contribution margin of $24 per unit; 1000 units of NOTE at $21 per unit and 1200 units of NUMB at $10 per unit. For the 4000 pounds of N; how should they allocated to maximize total contribution margin (you do NOT have to calculate total contribution margin). In blank one, indicate how pounds of N should be allocated to NOISE. In blank two, indicate how many pounds of N should be allocated to NOTE. In blank three, indicate how many pounds of N should be allocated to NUMV. HINT: It is possible that one of the products will not have any pounds of N allocated to it. Blank # 1 A/ Blank # 2 A Blank # 3 AJ

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