Ring company can sell a maximum of 1000 units of each size

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Reference no: EM13602749

Ring Company manufactures two tables, Small and Large. The following data is available:
Small Large

Selling price per unit $100 $210
Variable cost per unit $68 $138
Machine hours required 3.2 10
Total fixed costs $9,600

Ring Company can sell a maximum of 1,000 units of each size of table. Machine hour capacity is 8,000 hours per year.

Required:
a. Which table has the higher contribution margin per unit?
b. Which table has the higher contribution margin per hour?
c. How many tables of each size should be produced to maximize income, and what is the maximum income?

Reference no: EM13602749

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