Balonglong Company makes the following products: Product A Product B Product C Sales Price $6.00 $10.00 $7.50 Variable Costs $2.00 $7.50 $3.00 Contribution Margin $4.00 $2.50 $4.50 MAchine time hours 2hrs 1 1/2 hrs 1 hr
Required:
a. If the company plans production based on contribution margin percentage in what order would it make these products? Show your computation.
b. If the company wants to maximize the return of the machine, in what order would it make these products? Show your computation.