Required :

A. What is the contribution margin per hour of machine time for each type of handbag?

B. What is the optimal mix of handbags?

C. What is the total contribution margin earned for the optimal mix?

Please give details of calculations.

Thanks.

Handbags Unlimited manufactures two types of handbags, the Clutch and the Tote, with unit contribution margins of Regardless of the type, each handbag must go through stitching machine. The company owns 4 stitching machines and each provides hours of machine time per year. Each Clutch handbag 12 minutes of machine time and each Tote handbag requires 30 minutes of machine time. There are no other constraints