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Question - MOMA Inc. can produce three different products interchangeably on two machines which have a total availability of 250 hours per month. The accounting department provides the following information on these products.
A
B
C
Selling price per unit
$25
$35
$80
Variable costs per unit
$15
$20
$45
Time required to produce 1 unit
6 minutes
12 minutes
42 minutes
Minimum units that must be produced per month
100
none
140
Maximum unit demand per month
200
Required -
1. Prepare a production plan that shows how many units of each product should be produced for the period.
2. Compute the total contribution margin expected based on the production plan.
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