Solution
Product | Units to be Produced |
A | 14,000 |
B | 8,200 |
C | 5,000 |
Alternate answer assuming total available hours are 55500.
Product | Units to be Produced |
A | 14,000 |
B | 7,800 |
C | 5,000 |
If the answer do not match please a comment because that maybe because the image is little blurry.
Working
Statement of ranking indicating which product to produced first, second and third | |||
Product | |||
A | B | C | |
Sales price per unit | $ 45.00 | $ 55.00 | $ 85.00 |
Variable cost per unit | $ 21.30 | $ 12.50 | $ 37.30 |
Contribution margin per unit | $ 23.70 | $ 42.50 | $ 47.70 |
Machine hour per unit | 1.50 | 2.50 | 3.00 |
Contribution margin per machine hour | $ 15.80 | $ 17.00 | $ 15.90 |
Ranking | II | III | I |
Produce | Second | Third | First |
.
Statement of Optimum mix | |||
Product | Units to be Produced | Machine hours per unit | Machine hours consumed |
A | 14,000 | 1.50 | 21000.00 |
B | 7,800 | 2.50 | 19500.00 |
C | 5,000 | 3.00 | 15000.00 |
Maximum Quantity | 55500.00 |
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