Under these circumstances how many units of each product

Reference no: EM13572984

The Cape Cod Manufacturing Company produces four different tables: models R1, R2, R3, and R4. A limitation of 3,000 machine-hours per week prevents Cape Cod Manufacturing Company from meeting the sales demands for its products. The product information is as follows:
--------------------------------R1------------------ R2---------------------- R3------------------- R4
Unit selling price -----   $900---------------- $600------------------- $350------------------ $600
Unit variable costs - --     (600) - --------------(250) ------------------- (200) --------------- (300)
Unit contribution margin -$300----------         $350--------------------- $150 -----------------$300
Machine-hours per unit     20-----------------      40------------------------ 20------------------- 30

Assume the maximum weekly demand for each product is as follows:
Product------------------------------Demand
R1 ------------------------------------80 units
R2 ------------------------------------20 units
R3 ------------------------------------70 units
R4 ------------------------------------20 units
Under these circumstances, how many units of each product should the company produce per week to maximize short-run profits?

Reference no: EM13572984

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