Labour hours (hours) 12.3. 9.1 Machine hours (hours) 15.2 7.4 Contribution margin per unit ($) $175 $125
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Question:
Labour hours (hours) 12.3. 9.1
Machine hours (hours) 15.2 7.4
Contribution margin per unit ($) $175 $125
Minimum requirements per month (units) 37 41
The total monthly available labour hours are 1,200 hours, and the total monthly available machine hours are 1,160 hours.
Your objective is to determine the optimal production product mix, given the identified constraints.
Required:
Calculate the optimal units for Deluxe and Basic models to maximize the monthly contribution margin
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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