A company produces two products X1 and X2. X1 is sold for NOK 27 per unit and the variable costs are NOK 22 per unit. X2 is sold for NOK 30 per unit and the variable costs are NOK 23 per unit. The products are processed in two departments with the following capacity and time consumption:


Capacity

Hours per unit X1

Hours per unit X2

Production department I

12,000 hours

4 h

6 h

Manufacturing department II

10,000 hours

5 h

2.5 h



Assume first that only production department I is limiting production (ignore production department II). Which product should be prioritized?
Assume that the products m are processed in both production departments. Calculate the optimal product mix and calculate the maximum contribution margin. You can draw a necessary figure directly in Excel, or manually on a piece of paper, photograph the figure and paste it into Excel.
Is the capacity fully utilized in both production departments?
In the next period, an increase in the price of X2 to NOK 31 is expected. How will this affect the company's overall contribution margin and profit? (Prepare a graphic presentation, preferably on a millimeter sheet, read the points in the graph that you think are of interest, state the readings and explain why these points shed light on the questions in the assignment).