Blossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $9 $8 $15 Variable cost per unit 3 5 6 Contribution margin per unit $6.00 $3.00 $9.00 Machine hours per unit 1.0 2.4 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 0 decimal places, e.g. 5,275.)
Blossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $9 $8 $15 Variable cost per unit 3 5 6 Contribution margin per unit $6.00 $3.00 $9.00 Machine hours per unit 1.0 2.4 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 0 decimal places, e.g. 5,275.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Blossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics:
Small | Medium | Large | |||||
---|---|---|---|---|---|---|---|
Selling price per unit
|
$9 | $8 | $15 | ||||
Variable cost per unit
|
3 | 5 | 6 | ||||
Contribution margin per unit
|
$6.00 | $3.00 | $9.00 | ||||
Machine hours per unit
|
1.0 | 2.4 | 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 0 decimal places, e.g. 5,275.)
Units
|
|
---|---|
Small
|
enter a dollar amount rounded to 0 decimal places |
Medium
|
enter a dollar amount rounded to 0 decimal places |
Large
|
enter a dollar amount rounded to 0 decimal places |
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