Rainier Inc Required:
A

question 95

Essay

Rainier Inc. has 6,400 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l r r r } & \text { Product X } & \text { Product Y } & \text { Product Z } \\\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \\\text { Machine hours per unit } & 2 & 3 & 2 \\\text { Sales demand in units } & 1,000& 1,500 & 1,500\end{array}$$
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:

Organic Chemicals

Compounds containing carbon that are found in or produced by living organisms.

Ozone Depletion

The thinning and reduction of the ozone layer in the Earth's atmosphere, primarily caused by the release of chemical compounds containing bromine and chlorine.

Agricultural

Relating to the science, art, and practice of cultivating land, producing crops, and raising livestock.

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem, including species diversity, genetic diversity, and ecosystem diversity.