Reference no: EM133027049
Question - Rosemary Inc. manufactures bottled water for elite sports people. Runner Water and Walker Water are custom created products. Each product must go through a printing machine in the printing department.
Total hours available for the printing department for both products is 270 hours.
There are no other constraints in the production process.
The following information is available for both products:
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Runner
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Walker
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Contribution margin per unit
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$18
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$30
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Time required to paint one unit (hours)
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0.10 hours
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0.15 hours
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Required - Using the above information answer the following questions.
1. What is the contribution margin per hour of printing department time for the Runner Water?
2. What is the contribution margin per hour of printing department time for the Walker Water?
3. Determine the optimal product mix.
4. Given your calculations, how many units of Runner Water should the company produce?
5. Given your calculations, how many units of Walker Water should the company produce?
6. What is the total contribution margin earned for the optimal product mix?