How can the company maximize the overall contribution margin

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Question - Xcelerate Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products:

 

Normal

High

Superior

Selling price per unit

$30

$41

$52

Variable costs per unit

$25

$35

$48

Contribution margin per unit

$5

$6

$4

Machine hours required

0.02

0.04

0.08

Required - If the limited resource can be increased by 600 hours, how can the company maximize the overall contribution margin?

Reference no: EM133045513

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