Question - Babyland Inc has 5,200 machine hours available each month. The following information on the company's three products is available:
Product 1 Product 2 Product 3
Contribution margin per unit $45.00 $54.00 $22.50
Machine hours per unit 3 2 1
Sales demand in units 900 1,000 3,000
Requirements -
What production schedule will maximize the company's profits?
What will be the maximum possible contribution margin?