Question
In: Accounting
Acme, LLC produces three models of paint sprayers. A limitation of only 2,000 machine hours available...
Acme, LLC produces three models of paint sprayers. A limitation of only 2,000 machine hours available per year for the equipment required to make components for the pump unit and components for the motor and gasoline engines used on all of the sprayers prevents Acme from meeting the sales demand for its paint sprayers. The three models are Residential, Commercial Electric and Commercial gas.
Give the following Data:
Residential Commercial Electric Commercial Gas
Unit Selling price: $400 $900 $1,200
Unit Variable Price: $200 $650 $850
Machine Hours per Unit: .8 1.25 1.5
Maximum annual Demand: 1000 units 1,500 units 300 units
1.) What is the recommended product mix to maximize profit in the short run?
2.) What is the total contribution margin at the recommended product mix?
Solutions
Expert Solution
Answer to Question 1:
Workings for Question 1:
Answer to Question 2:
ekkarill92 answered 4 days agoRelated Solutions
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