Products exceed the available amount of machine time


Task: Marshall, Inc., produces three products but weekly demand for the three products exceed the available amount of machine time. Following is information about each product:
A B C

Contribution margin per unit $300 $400 $150
Machine hours per unit             3     2    0.50
Weekly demand (units)         100   300   800

(a.) Determine how many units each of Product A, Product B, and Product C that Marshall, Inc., should produce each week assuming 1,000 hours of available machine time.

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Accounting Basics: Products exceed the available amount of machine time
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