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Whispering Winds Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features,
Whispering Winds Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Whispering Winds is currently operating at full capacity with limited machine time. Sales and production information relevant to each model is as follows: Product Economy Standard Deluxe Selling price $27.00 $52.20 $91.30 Variable costs and expenses $12.00 $17.00 $42.50 Machine hours required 0.50 0.80 1.60 Ignoring the machine time constraint, which single product should Whispering Winds Industries produce? Whispering Winds Industries should produce What is the contribution margin per unit of limited resource for each product? (Round answers to 2 decimal places, e.g. 15.75.) Model Contribution Margin Economy $ per machine hour Standard $ per machine hour Deluxe per machine hour If it could obtain additional machine time, how should the company use the additional time? Additional machine time should be used to produce the
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