Katy Company manufactures three product models, Standard, Premium, and Deluxe. The following is the data for each product per week.

Standard

Premium

Deluxe

Total

Maximum weekly demand (in units)

300

250

200

750

units

Current weekly production (in units)

200

200

200

600

units

Contribution margin per unit

$40

$45

$60

Number of machine hours required

2

3

5

Maximum Machine hours per week

2,000

hours

Required)

a)What is the contribution margin per machine hour for each model? (10 points)

b) What is the total contribution margin at the current level of production for each model? (5 points)

c) Given maximum capacity, how many units of chairs of each model to be produced to maximize profits? (5 points)

d) If there is no limit for machine hours available, how many chairs of each model should the company produce to maximize profits? (5 points)