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Your production manager has asked you to identify the quantity of items that should be produced to maximize the company's contribution margin for the period.
Your production manager has asked you to identify the quantity of items that should be produced to maximize the company's contribution margin for the period. Your company has four products: - Standard widgets - Blue flying widgets - Red swimming widgets - Yellow hopping widgets Click here to view the Excel. Click here to view SOLVER. You have created a spreadsheet outlining the demand, machine hours per unit, contribution margin per unit, and overall machine hours. Use Microsoft Solver to identify the number of units to be produced for each product and the maximum contribution margin. Number produced - Standard Number produced - Blue Flying Number produced - Red Swimming Number produced - Yellow Hopping Maximum contribution margin \begin{tabular}{|c|c|c|c|c|c|} \hline & Standard & Blue Flying & Red Swimming & Yellow Hopping & Total \\ \hline Number Produced & 1 & 1 & 1 & 1 & \\ \hline CM per unit & 17.87 & 15.20 & 21.00 & 19.87 & \\ \hline Total CM & 17.87 & 15.20 & 21.00 & 19.87 & 73.94 \\ \hline Machine Hours Per Unit & 6 & 8 & 12 & 11 & 0 \\ \hline Total Machine Hours & 6 & 8 & 12 & 11 & 37 \\ \hline \multicolumn{6}{|l|}{ Constraints } \\ \hline Machine Hours & & & & & 50,000 \\ \hline Demand & 1,200 & 1,750 & 1,670 & 1,250 & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular}
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