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What is the optimum production plan for the company

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Question - A Company has two product lines, Model A and Model B. The unit contribution margin is, respectively, $110 for the Model A and $175 for the Model B. Both models need assembly and testing. Each Model A requires 3 hours to assemble, while each Model B requires 4 hours. The total time available in the Assembly Department is 12,240 hours. In addition, each Model A requires 2.5 hours to test and each Model B requires 1.5 hours to test. The total time available in the Testing Department is 6,090 hours.

a. Based on this information, what is the optimum production plan for the company?

b. At the optimum production level, what is the total contribution margin?

Reference no: EM132733574

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