FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Exercise 8-12
Crane, Inc. produces three types of balloons—small, medium, and large—with the following characteristics:
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.)
Small | Medium | Large | |||||
Selling price per unit | $7 | $8 | $11 | ||||
Variable cost per unit | 2 | 5 | 6 | ||||
Contribution margin per unit | $5 | $3 | $5 | ||||
Machine hours per unit | 1 | 2.4 | 3 | ||||
Demand in units | 570 | 1,060 | 800 |
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 |
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Medium |
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Large |
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