Excel memory company can sell all units of a computer memory x and y that it can produce, but it has limited production capacity. it can produce 2 units of x per hour or 3 units of y per hour, and it has 4,000 production hours available.
contribution margin is $5 for product x and $4 for product y.
1.) calculate contribution margin per production hour.
contribution margin per production hour.
product x product y
contribution margin per unit $5 $4
contribution margin per production hour
2.) what is the most profitable sales mix for this company ? choose from the following :
a.) allocate all of its production capacity to product y.
b.) allocate 40% of its production capacity to product x.
c.) allocate all of its production capacity to product x.
d.) allocate 24% of its production capacity to product y.
Answers: 2
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Excel memory company can sell all units of a computer memory x and y that it can produce, but it has...
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