Earth company makes 2 products wind and fire wind has a

Reference no: EM13601359

Earth Company makes 2 products, Wind and Fire. Wind has a Contribution Margin per unit of $6.00 and Fire has a contribution margin per unit of $11.00. Earth Company has annual fixed costs of $290,000 units. Assume that there are only 20,000 machine hours available to make the two products. Each unit of Wind takes 2 machine hours and each unit of Fire takes 4 machine hours. Demand for each product is 4,000 units. How many units of each product should be produced?

Reference no: EM13601359

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