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How many units of each product should the company produce

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Reference no: EM132849914

Question - Austin martin makes three products (X, Y, & Z) with the following characteristics:

Selling price per unit for (X, Y, & Z) respectively $10 $15 $20

Variable cost per unit for (X, Y, & Z) respectively $6 $10 $10

Machine hours per unit for (X, Y, & Z) respectively 2 4 10

The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce?

Reference no: EM132849914

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