Ensign Company produces two products (Shirts and Pants), however their ability to produce these products are...

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Ensign Company produces two products (Shirts and Pants), however their ability to produce these products are constrained by machine hours with total capacity of 2,000 minutes per week. Shirts Pants Selling price per unit $60 $50 Less variable expenses per unit 36 35 Contribution margin per unit $24 $15 Current demand per week (units) 2,000 2,200 Machine time required per unit 3.00 min 1.50 min Given this information and the constraint of machine hours, how many units of each product can Ensign make and sell if it wants to maximize its total contribution margin? Ensign Company produces two products (Shirts and Pants), however their ability to produce these products are constrained by machine hours with total capacity of 2,000 minutes per week. Shirts Pants Selling price per unit $60 $50 Less variable expenses per unit 36 35 Contribution margin per unit $24 $15 Current demand per week (units) 2,000 2,200 Machine time required per unit 3.00 min 1.50 min Given this information and the constraint of machine hours, how many units of each product can Ensign make and sell if it wants to maximize its total contribution margin?

Answer rating: 100% (QA)

Answer To determine how many units of each product Ensign Company should produce to maximize its con... View the full answer