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Xcelerate Productions Inc. manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products:
Normal : Selling price per unit $30 Variable costs per unit $24.81 Contribution margin per unit $5.19 Machine hours required 0.02
High : Selling price per unit $42 Variable costs per unit $35 Contribution margin per unit $7.00 Machine hours required 0.04
Superior : Selling price per unit $52 Variable costs per unit $48 Contribution margin per unit $4.00 Machine hours required 0.08
If the limited resource can be increased by 780 hours, calculate the maximum increase in contribution margin. Assume that Xcelerate can sell all products manufactured.
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