Products LX4 EX6 RX8 Selling price $180 $280 $320 Variable manufacturing cost per unit $110 $190...
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Products LX4 EX6 RX8 Selling price $180 $280 $320 Variable manufacturing cost per unit $110 $190 $210 Variable marketing cost per unit $20 $60 $68 Contribution margin per unit $50 $30 $42 Machine hours required to produce one unit 1.0 0.5 0.75 The factory has total machine hours of 10,000 hours and wants to maximize profit (total contribution margin). 1. Assume there is unlimited market demand for the three products. How many units should be produced for each product? 2. Assume market demands for LX4, EX6, and RX8 are 3,000 units, 8,000 units, and 5,000 units, respectively. How many units should be produced for each product? 3. Assume market demands for LX4, EX6, and RX8 are 4,000 units, 11,000 units, and 8,000 units, respectively. How many units should be produced for each product? 23 Products LX4 EX6 RX8 Selling price $180 $280 $320 Variable manufacturing cost per unit $110 $190 $210 Variable marketing cost per unit $20 $60 $68 Contribution margin per unit $50 $30 $42 Machine hours required to produce one unit 1.0 0.5 0.75 The factory has total machine hours of 10,000 hours and wants to maximize profit (total contribution margin). 1. Assume there is unlimited market demand for the three products. How many units should be produced for each product? 2. Assume market demands for LX4, EX6, and RX8 are 3,000 units, 8,000 units, and 5,000 units, respectively. How many units should be produced for each product? 3. Assume market demands for LX4, EX6, and RX8 are 4,000 units, 11,000 units, and 8,000 units, respectively. How many units should be produced for each product? 23
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