The company makes products A and B$.$ The market demand for the products is greater than current manufacturing capability. Machine hours are constrained. The contribution margins for products A and B are $$5\mathrm{.}00$ and $$3\mathrm{.}00$ respectively. The contribution margins per machine hour are $$2\mathrm{.}50$ for product A and $$3\mathrm{.}00$ for product B$.$ What sales mix would maximize profits?

 

Answer rating: 100% (QA)

To determine the sales mix that would maximize profits we need to consider the contribution margins ... View the full answer