Gardner Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Gardner is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows.

Instructions
(a) Ignoring the machine time constraint, which single product should Gardner Industries produce?
(b) What is the contribution margin per unit of limited resource for each product?
(c) If additional machine time could be obtained, how should the additional time beused?

Transcribed Image Text:

Product Economy Standard Deluxe $30 Selling price Variable costs and expenses$12 Machine hours required $50 $18 .8 $100 $42 1.6 .5