Whelchel Products Inc. makes two products--K12C and R25O. Product K12C's selling price is $56.00 and...
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Whelchel Products Inc. makes two products--K12C and R25O. Product K12C's selling price is $56.00 and its unit variable cost is $33.60. Product R25O's selling price is $195.00 and its unit variable cost is $156.00. The monthly demand is 980 units for product K12C and 500 units for R25O. The constrained resource is a particular machine that is available for 10,100 minutes each month. Each unit of product K12C requires 7 minutes on this machine and each unit of product R25O requires 15 minutes on this machine. What is the maximum contribution margin the company can earn per month?
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