Reference no: EM132939935
Rosemary Inc. manufactures bottled water for elite sports people. Runner Water and Walker Water are custom created products. Each product must go through a printing machine in the printing department.
- Total hours available for the printing department for both products is 270 hours.
- There are no other constraints in the production process.
The following information is available for both products:
Runner Walker
Contribution margin per unit $18 $30
Time required to paint one unit (hours) 0.10 hours 0.15 hours
Using the above information answer the following questions.
Problem 1: What is the contribution margin per hour of printing department time for the Runner Water?
Problem 2: What is the contribution margin per hour of printing department time for the Walker Water?
Problem 3: Determine the optimal product mix.
Problem 4: Given your calculations, how many units of Runner Water should the company produce?
Problem 5: Given your calculations, how many units of Walker Water should the company produce?
Problem 6: What is the total contribution margin earned for the optimal product mix?
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