Famous Face Dolls Company manufactures and sells custom dolls through a network of specialty stores. The face of each doll is hand-painted by a highly skilled craftsperson in the image of a popular public figure. Large dolls (75-80 cm) sell for $150 each and have a unit variable cost of $90. Each large doll requires 30 minutes of painting time. Small dolls (40-45 cm) sell for $100 and have a unit variable cost of $64.00. Each small doll requires 15 minutes of painting time. Typical demand is 200 large dolls and 500 small dolls per month. Due to upcoming vacations, the amount of available face-painting time is limited to 180 hours for the next month.

To achieve the greatest contribution margin within the stated constraints, Famous Face Dolls should manufacture:

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To maximize the contribution margin within the stated constraints we need to determine how many of e... View the full answer