Hello,

I am working through this problem around product mix decisions and i am unsure of where to start to determine the ideal product mix and its total contribution. would you please explain how the process for how to start this problem?

Thank you.

42. Product mix decisions (Appendix 7.1; adapted from CPA exam). The Hanson Com- pany manufactures two products, Zeta and Beta. Each product must pass through two processing operations. All materials enter production at the start of Process No. 1. Hanson has no work-in-process inventories. Hanson may produce either one prod- uct exclusively or various combinations of both products, subject to the following constraints: Process No. 1 Process No. 2 Contribution Margin per Unit 1 1 Hours Required to produce One Unit of: Zeta Beta Total Capacity per Day in Hours. $4.25 5.25 2 3 1,000 1,275 A shortage of technical labor has limited Beta production to 400 units per day. The firm has no constraints on the production of Zeta other than the hour constraints in the preceding schedule. Assume that all relations between capacity and production are linear. What is the total contribution from the optimal product mix? Tea the information for the Hanson Company