Moxy Inc Has 9,600 Machine Hours Available Each Month Required:
A

question 115

Essay

Moxy Inc. has 9,600 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l r r r } & \text { Product X } & \text { Product Y } & \text { Product Z } \\\text { Contribution margin per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 \\\text { Machine hours per urit } & 8 & 12 & 6 \\\text { Sales demand in units } & 500 & 750& 1,000\end{array}$$
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:

Compensating Balance

A compensating balance is a minimum balance that must be maintained in a bank account, required by some banks in order for their customers to obtain or maintain a loan.

Master Account

A central account that holds funds or securities, often used by institutions to manage multiple sub-accounts.

Available Balance

The amount of funds in a bank account that is accessible for withdrawal or processing of checks or electronic payments, not including any holds, unprocessed transactions, or restrictions.

Cheque Book

A booklet of cheques provided by a bank allowing the account holder to pay others by writing cheques.