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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.

Required -

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: EM132740844

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