FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Blossom, Inc. produces three types of balloons-small, medium, and large-with the following characteristics:
Small
Medium
Large
Selling price per unit
$7.00
$11.00 $15.00
Variable cost per unit
3.00
5.00
6.00
Contribution margin per unit
$4.00
$6.00
$9.00
Machine hours per unit
1.00
2.40
3.00
Demand in units
620
1,100
950
The company has only 2,000 machine hours available each month.
How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to O
decimal places, e.g. 5,275.)
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Transcribed Image Text:Blossom, Inc. produces three types of balloons-small, medium, and large-with the following characteristics: Small Medium Large Selling price per unit $7.00 $11.00 $15.00 Variable cost per unit 3.00 5.00 6.00 Contribution margin per unit $4.00 $6.00 $9.00 Machine hours per unit 1.00 2.40 3.00 Demand in units 620 1,100 950 The company has only 2,000 machine hours available each month. How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to O decimal places, e.g. 5,275.)
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