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.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
  $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
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
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, eg. 5,275.)
Units
Small
Medium
Large
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 $9 $8 $15 Variable cost per unit 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, eg. 5,275.) Units Small Medium Large
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