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Zahra Company manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price$150 $250 $500
Zahra Company manufactures three sizes of kitchen appliances: small, medium, and large.
Product information is provided below.
SmallMediumLargeUnit selling price$150 $250 $500 Unit costs: Variable manufacturing (60) (120) (200)Fixed manufacturing (40) (50) (120)Variable selling and administrative (30) (30) (30)Unit profit$20 $ 50 $150 Demand in units 100 120 100 Machine-hours per unit 20 40 100The maximum machine-hours available are 11000 per month.
If the product mix is optimized, what is the maximum Total Contribution Margin Zahra can obtain?
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