A company has 10,000 hours of capacity and manufactures two products. Product 1 takes 2 hours per unit. Product 2 takes 3 hours per unit. The contribution margin per unit for Product 1 is $5. The contribution margin per unit for Product 2 is $6. Neither product has enough demand to use all of the plant capacity, but the demand for both products exceeds the plant capacity. Which product or products should be manufactured?

Question

Answer

0 units of Product 1 and 5,000 units of Product 2

Answer

5,000 units of Product 1 and 0 units of Product 2

Answer

make Product 2 first until meet customer demand, then make Product 1

Answer

make Product 1 first until meet customer demand, then make Product 2

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A company has 10,000 hours of capacity and manufactures two products. Product 1 ...

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