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velue. 2.85 points slavin Corporation manufactures two products, Alpha and Delta. Each product requlres time on a single machine. The machine has a monthly capacity
velue. 2.85 points slavin Corporation manufactures two products, Alpha and Delta. Each product requlres time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand tor the two products is limlted to 170 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Dellas each month. Cost and machine-usage data for the two producls are showrn in the following table, which Slavin managers use for planning purposes: Prie Less variable costs per unit 3120$150 Material Labor Overhead 25 17.5 34 37 Contibution margin per unit Fixed costs $555 5 63 5 800 S 4,800 $12 600 Manutachunng Markeling arnd adrninistralive 2.0 25 Machirne hours per urnit Machine hours used Machine hours available Quanlity produced Maximum demand Prott 495 110 170 $765 170 Required: a. What is the optimal production schedule for Slavin? In other words, how many Alphas and Deltas should the company produce each month to maximize monthly profit? 170 unit5 Alphas Deltas
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