Asked by Anonymous
Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only sell 45 units and 20 units of A and C, respectively.
Product A Product B Product C
Contribution margin per unit $15 $10 $12
Labor-hours per unit 2.5 2.5 2
Machine-hours per unit 5 3.5 1
a) What is the contribution margin per labor-hour for Product A?
b) What is the contribution margin per labor-hour for Product B?
c) What is the contribution margin per labor-hour for Product C?
d) How many units of Product A should the company make?
e) How many units of Product B should the company make?
f) How many units of Product C should the company make?
Product A Product B Product C
Contribution margin per unit $15 $10 $12
Labor-hours per unit 2.5 2.5 2
Machine-hours per unit 5 3.5 1
a) What is the contribution margin per labor-hour for Product A?
b) What is the contribution margin per labor-hour for Product B?
c) What is the contribution margin per labor-hour for Product C?
d) How many units of Product A should the company make?
e) How many units of Product B should the company make?
f) How many units of Product C should the company make?
Answers
Answered by
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