MOMA Inc. can produce three different products interchangeably on two machines which have a total...
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Accounting
MOMA Inc. can produce three different products interchangeably on two machines which have a total availability of 250 hours per month. The accounting department provides the following information on these products.
| A | B | C | |
| Selling Price per unit | $25 | $35 | $80 |
| Variable costs per unit | $15 | $20 | $45 |
| Time required to produce 1 unit | 6 minutes | 12 minutes | 42 minutes |
| Minimum units that must be produced per month | 100 | none | 140 |
| Maximum unit demand per month | 200 | none | 200 |
Required:
a) Prepare a production plan that shows how many units of each product should be produced for the period
b) Compute the total contribution margin expected based on the production plan
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