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Question 1: Demi Delights manufactures specialty chocolate bars X, Y and Z, which she believes will appeal to the younger generation of consumers. The contribution margins for the bars are $0.40, $0.50 and $1.00 respectively. Demi Delights faces the problem of having only 2500 machine hours available per month. Each batch needs to use the same machine for processing; the hours required for each of the products are 1, 1 and 5 hours respectively. Demand for product X is 500, Y is 1500 and Z is 1000. How many units of each product will the firm produce?
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