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Problem - Kinkaid's Fine Cutlery manufactures two models: Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 72 units of the Premium Model. The following per unit data apply:
Standard
Premium
Contribution margin per unit
$24
$30
Number of machine hours required
3
5
Required - If there are 495 machine hours available per week, how many of each model should Kinkaid produce to maximize pro?ts?
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The percentage decrease in the estimated annual net cash inflows that would cause the company's management to reject the project from a financial perspective
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