Mallory Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to

Question:

Mallory Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Mallory estimates it could sell 600 tents per month and 600 sleeping bags per month.
Following is information for each of these products:
Tent Sleeping Bag
Selling price per item $68.00 $43.00
Variable cost per item 49.50 29.00
per item $18.50 $14.00
Machine hours per item 1.1 .8
Mallory has 800 machine hours available each month. If Mallory allocates its production capacity between the tents and sleeping bags so that it maximizes the company's , what will the be?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...