Question
Wildhorse, Inc. produces three types of balloonssmall, medium, and largewith the following characteristics: Small Medium Large Selling price per unit $8.00 $11.00 $15.00 Variable cost
Wildhorse, Inc. produces three types of balloonssmall, medium, and largewith the following characteristics:
| Small | Medium | Large | |||||
|---|---|---|---|---|---|---|---|
| Selling price per unit | $8.00 | $11.00 | $15.00 | ||||
| Variable cost per unit | 3.00 | 5.00 | 6.00 | ||||
| Contribution margin per unit | $5.00 | $6.00 | $9.00 | ||||
| Machine hours per unit | 1.00 | 2.40 | 3.00 | ||||
| Demand in units | 560 | 1,100 | 870 |
The company has only 2,000 machine hours available each month.
How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.)
| Units (enter a dollar amount rounded to 0 decimal places) | |
|---|---|
| Small | |
| Medium | |
| Large |
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Managerial Accounting
Authors: Charles E. Davis, Elizabeth Davis
2nd edition
1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445
