Reference no: EM132972673

Blossom Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Blossom is currently operating at full capacity with limited machine time.

Sales and production information relevant to each model is as follows:

Product                                      Economy           Standard         Deluxe
Selling price                               $30.00              $55.60         $102.60
Variable costs and expenses           $11.50             $18.00           $43.00
Machine hours required                     0.50                0.80                1.60

Problem 1: Ignoring the machine time constraint, which single product should Blossom Industries produce?

Problem 2: What is the contribution margin per unit of limited resource for each product? (Round answers to 2 decimal places, e.g. 15.75.)