Vin Pinball Machines, Inc. makes two types of pinball machines: the SM pinball machine and the Zelda pinball machine. Vintage Pinball has the following unit-level data for the two products:

1. How many SM pinball machines and Zelda pinball machines, respectively, should Vintage Pinball Machines produce per month, taking into account the welding machine limitation of 100 hours per month?
2. Are there any ways you can think of that could allow Vin Pinball Machines to relax the constraint at the welding machine? Provide some examples.

	SM Pinball Machine	Zelda Pinball Machine
Selling price per unit	$2,000	$2,500
Variable cost per unit	$1,000	$2,000
Contribution Margin per unit	$1,000	$500
Contribution Margin ratio	50%	20%
Units demanded per month	100	75
Time Needed on Welding Machine per unit	2.5 hours	1 hour

Answer rating: 100% (QA)

To determine the optimal production mix for Vintage Pinball Machines given the welding machine limitation of 100 hours per month we need to calculate ... View the full answer