Marshall, Inc (A)Determine How Many Units Each of Product A, Product B

question 13

Essay

Marshall, Inc., produces three products but weekly demand for the three products exceed the available amount of machine time.Following is information about each product:
$$\begin{array} { l c r r } & \text { Product A } & \text { Product B } & \text { Product C } \\\text { Contribution margin per unit } & 3 0 0&\$400 & \$ 150 \\\text { Machine hours per unit } &3 & 2 & 0.50 \\\text { Weekly demand (units) } & 100 & 300 & 8 0 0 \end{array}$$
(a.)Determine how many units each of Product A, Product B, and Product C that Marshall, Inc., should produce each week assuming 1,000 hours of available machine time.

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Definitions:

Volunteer Fire Departments

Firefighting organizations primarily made up of volunteers who provide emergency firefighting and rescue services to their communities.

Provision

The act of supplying or making available goods or services in the market.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to consume without reducing the amount available for others.

Marginal Social Benefit

The additional benefit to society from the consumption of an additional unit of a good or service.