Amount of each product would be most advantageous to produce

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Reference no: EM131205537

Oruro Chemical Corporation manufactures a variety of household cleaners, solvents, and beverages. Because of a recent shortage of mytron, a key ingredient needed for three of its products, the corporation has to decide what amount of each product would be most advantageous to produce. Information related to the three products that use mytron are shown below: Hand Soap Paint Remover Root Beer Contribution margin per case $24 $20 $12 Contribution margin ratio 50% 70% 60% Mytron required per case (in ounces) 3 5 2 Maximum monthly demand (in cases) 500 200 2,000 Assume that Oruro only has 3,000 ounces of mytron available next month. What is the maximum amount of contribution margin that Oruro can generate next month from the three products above given the shortage of mytron? $16,000 $19,000 $21,000 $24,000

Reference no: EM131205537

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