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Question - Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35.
If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made? [HINT - You should convert the hours to minutes.]
Given the 5,000 available hours, how many handsaw blades should Power Corp. make?
Given the 5,000 available hours, how many table saw blades should Power Corp. make?
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