Soft Mattress Inc. produces both a queen- and a king-size soft mattress. Selected data related to each product follow:

Only two employees are trained to stuff the secret soft ingredient into the mattresses. They have a maximum of 4,000 total stuffing hours per year.

Required
A. What is the contribution margin per limited resource for each type of bed?
B. Assuming that demand is not a constraint, how many queen- and king-size mattresses should be produced by Soft MattressInc.?

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Sales price Direct materials Direct labor Variable overhead Stuffing hours Queen $525.00 $350.00 $ 75.00 $ 25.00 King $635.00 365.00 $85.00 35.00