Red Skull Robots is a German toy manufacturing company which produces American Hero action figures. One...

 

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Red Skull Robots is a German toy manufacturing company which produces American Hero action figures. One of their products is a Captain America action figure. There are 3 different types of Captain America figures that could be produced: Figure A: Captain America WWII action figure Figure B: Captain America modern day costume with shield Figure C: Captain America in a suit, ready for a date with Margaret Carter The sales/cost relationship for each of these products per unit is as follows: Sales Price Variable Costs Contribution Margin Figure A Figure B Figure C $30 $50 $40 $24 $40 $38 $6 $10 $2 There are no fixed costs specifically associated with any of the above products. Total fixed costs overall for Captain America figures amount to $10,000. The company has set aside 1,800 machine hours per month and can obtain 130,000kgs per month of a material required to produce each of the Captain America figures. Time and materials required to produce one unit of each product are as follows: Figure A: 10 minutes, 20kgs of material Figure B: 15 minutes, 10kgs of material Figure C: 20 minutes, 25kgs of material Monthly demand for figures A, B and C are 2,000 units, 5000 units and 1,500 units respectively. Determine how many units should be produced of each product if profits for the division are to be maximized. Red Skull Robots is a German toy manufacturing company which produces American Hero action figures. One of their products is a Captain America action figure. There are 3 different types of Captain America figures that could be produced: Figure A: Captain America WWII action figure Figure B: Captain America modern day costume with shield Figure C: Captain America in a suit, ready for a date with Margaret Carter The sales/cost relationship for each of these products per unit is as follows: Sales Price Variable Costs Contribution Margin Figure A Figure B Figure C $30 $50 $40 $24 $40 $38 $6 $10 $2 There are no fixed costs specifically associated with any of the above products. Total fixed costs overall for Captain America figures amount to $10,000. The company has set aside 1,800 machine hours per month and can obtain 130,000kgs per month of a material required to produce each of the Captain America figures. Time and materials required to produce one unit of each product are as follows: Figure A: 10 minutes, 20kgs of material Figure B: 15 minutes, 10kgs of material Figure C: 20 minutes, 25kgs of material Monthly demand for figures A, B and C are 2,000 units, 5000 units and 1,500 units respectively. Determine how many units should be produced of each product if profits for the division are to be maximized.