Question: GAME Enterprises manufactures three computer games called Rocket Star, Game Master, and Rock Warrior. The product line data follow. The current production capacity is 100,000
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The current production capacity is 100,000 machine hours.
1. Which computer game should be manufactured first? Which should be manufactured second? Which last?
2. How many of each type of computer game should be manufactured and sold to maximize the companys contribution margin based on the current production activity of 100,000 machine hours? What is the total contribution margin for thatcombination?
Rocket Star 20,000 Game Master 30,000 Rock Warrior 18,000 Current unit sales demand Machine hours per unit Selling price per unit Unit variable manufacturing costs Unit variable selling costs 2.0 1.0 2.5 $20.00 $12.50 $6.50 $16.00 $10.00 $5.00 $30.00 $18.75 $6.25
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