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Zoom Corporation manufactures and sells three different types of binoculars. They are referred to as Good, Better, and Best binoculars. Grinding and polishing time is

Zoom Corporation manufactures and sells three different types of binoculars. They are referred to as Good, Better, and Best binoculars. Grinding and polishing time is limited. More time is required to grind and polish the lenses used in the Better and Best binoculars. Additional information is provided below.

Product

Good

Better

Best

Selling price$78.40$329.00$754.00Variable costs and expenses48.00182.00486.00Contribution margin$30.40$147.00$268.00Grinding and polishing time required0.4hrs1.5hrs4hrs

Ignoring the time constraint, what strategy would appear to be optimal?

The company should shift toward production of more

best

better

good

units.

What is the contribution margin per unit of limited resource for each type of binocular?(Round answer to 0 decimal places, e.g. 5,275.)

GoodBetterBestContribution margin per unit of limited resource$

$

$

If additional grinding and polishing time could be obtained, how should the additional capacity be used?

Additional capacity should be used to make

best

better

good

binoculars.

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