Rainier Inc Has 6,400 Machine Hours Available Each Month Required:
A

Rainier Inc has 6,400 machine hours available each month.The following information on the company's three products is available:
$\begin{array}{|l|r|r|r|} \hline & \text { Product } & \text { Product } & \text { Product } \\& \times & Y & Z \\\hline \text { Contribution margin per } & \$ 20.00 & \$ 21.00 & \$ 17.50 \\\text { unit } & & & \\\hline \text { Machine hours per unit } & 2 & 3 & 2 \\\hline \text { Sales demand in units } & 1,000 & 1,500 & 1,500\\\hline \end{array}$

Required:
a.What production schedule will maximize the company's profits?
b.What will be the maximum possible contribution margin?

Correct Answer:

Verified

a.CM/hr for X: 20/2 = $10;Y: 21/3 = $7;Z...

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