Question: Problem 2 (continued from previous page): Part 3: Utilization of a constrained resource (5 points) The constraint at Sawyer Inc. is an expensive milling machine,

Problem 2 (continued from previous page): Part 3: Utilization of a

Problem 2 (continued from previous page): Part 3: Utilization of a constrained resource (5 points) The constraint at Sawyer Inc. is an expensive milling machine, which can only be operated for 40 hours or 2,400 minutes a week. The two products listed below use this constrained resource. LK Selling price per unit $60 Variable cost per unit $25 Time on the constraint 5 minutes per unit Weekly market demand 400 units DW $80 $32 8 minutes per unit 150 units (a) Recall that the milling machine can only be operated for 2,400 minutes a week. Is the company able to meet the weekly market demand for both products? Please support your answer by calculations. (1 point) (b) Recall that the milling machine can only be operated for 2,400 minutes a week. How many units each of the two product should be produced so that the company can generate the maximum amount of contribution margin? (4 points)

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