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universal 1 universal 2 universal 3 selling price 1 0 0 1 2 0 1 4 0 direct materials 1 5 1 5 1 5

universal 1 universal 2 universal 3
selling price 100120140
direct materials 151515
direct labour 242448
other variable costs 81617
total allocted fixed costs 660066006600
the company requires 2 machine hours to produce 1 unit of universal 1.4 machine hours to produce 1 unit of universal 2
and 3 hours to produce one unit of universal 3. the company has 2500 total machine hours per month. Market demand is 500 units
for universal 1,300 for universal 2, and 400 for universal 3.
a)calculate the appropriate margin for each product to determine the optimal production mix that maximizes the companys profits.
b)how many units of 1 should the company produce to maximize overall profit?
b)how many units of 2 should the company produce to maximize overall profit?
b)how many units of 3 should the company produce to maximize overall profit?
e)total contribution margin under optimal production mix?
f)total operating income under optimal production mix?

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