Short Inc Has 5,200 Machine Hours Available Each Month Required:
A

question 63

Essay

Short Inc. has 5,200 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l r r r } & \text { Product 1 } & \text { Product 2 } & \text { Product 3 } \\\text { Contribution margin per unit } & \$ 45.00 & \$ 5 4 . 0 0 &\$ 2 2 . 5 0 \\\text { Machine hours per unit } & 3 & 2 & 1 \\\text { Sales demand in urits } & 900 & 1,000 & \mathbf { 3 , 0 0 0 }\end{array}$$
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?

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Definitions:

Perceptual Reasoning

The ability to use visual information to solve problems, make decisions, and understand spatial relationships.

WISC-IV

The Wechsler Intelligence Scale for Children, Fourth Edition, a tool used to assess the intelligence level of children.

Stanford-Binet

An intelligence test designed to assess human intelligence and cognitive abilities in both children and adults.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition is an instrument designed for assessing the intelligence and cognitive capability of adults.