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?

---

Definitions:

Marginal Tax Rate

The amount of tax paid on an additional dollar of income, used in progressive tax systems to ensure higher incomes are taxed at higher rates.

Federal Income Tax

The United States federal government imposes a financial charge on the yearly revenues of individuals, corporations, trusts, and other legal entities.

Marginal Tax Rate

The tax rate that applies to the next additional increment of a taxpayer's taxable income.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxation by the government.