Gerber Inc has 5,200 machine hours available each month. The following information on the company's three products is available:
|
Product 1
|
Product 2
|
Product 3
|
|
Contribution margin per unit
|
$45.00
|
$54.00
|
$22.50
|
|
Machine hours per unit
|
3
|
2
|
1
|
|
Sales demand in units
|
900
|
1,000
|
3,000
|
Requirements:
|
What production schedule will maximize the company's profits?
|
Product 1:
Product 2:
Product 3:
|
|
What will be the maximum possible contribution margin?
|