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How many units of each blender will blend produce

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Blend corporation produces 2 types of blenders. Due to global supply chain problems, the supply of the metal is limited and Blend is able to obtain only 20,000 pounds. Which blender should Blend produce given the following information

Unit Selling Price

Deluxe - $95

Basic - $75

Unit Variable Costs

Deluxe - $57

Basic - $45

Unit Contribution Margin

Deluxe - $38

Basic - $30

Number of pounds of metal per blender

Deluxe - 4

Basic - 2.5

Question 1. Assume there is no shortage in metal and ample demand, which blender should Blend produce?

Question 2. Assume that Blend must produce at least 2,000 of each model to remain competitive. With the constraint of 20,000 pounds of metal, how many units of each blender will Blend produce?

Question 3. How much will total contribution be when profit is maximized under constraint of 20,000 pounds and a 2,000 minimum production?

Reference no: EM132528579

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