Rosie's Company has three products, P1, P2, and P3. The maximum Rosie' s can sell is 65, 300 units of P 1, 24,300 units of P2, and 12,300 units of P3. Rosie's has limited production capacity of 110, 100 machine hours. Machine hours per unit are as follows: P1, 1 hour; P2, 2 hours; P3, 4 hours. Contribution margin per unit is $5 for P1, $15 for P 2, and $25 for P3. What is the most profitable sales mix for Rosie's Company?

Rosie's Company has three products, P1, P2, and P3. The maximum Rosie' s can sell is 65, 300 units of P 1, 24,300 units of P2, and 12,300 units of P3. Rosie's has limited production capacity of 110, 100 machine hours. Machine hours per unit are as follows: P1, 1 hour; P2, 2 hours; P3, 4 hours. Contribution margin per unit is $5 for P1, $15 for P 2, and $25 for P3. What is the most profitable sales mix for Rosie's Company?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 12EB: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes...

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