Question
Wildhorse Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Wildhorse
Wildhorse Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Wildhorse estimates it could sell 610 tents per month and 610 sleeping baps per month. Following is information for each of these products: Tent Selling price per item Variable cost per item Contribution margin per item Machine hours per item $79.00 67.00 $12.00 110 Sleepine Bag $57.00 44.00 $13.00 1.00 Wildhorse has 913 machine hours available each month. In order to maximize the company's total contribution margin, how should Mallory allocate its production capacity between the tents and sleeping bags?
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