Bell Company Manufactures Two Tables, Small and Large Bell Company Can Sell a Maximum of 1,000 Units of Data

question 20

Essay

Bell Company manufactures two tables, Small and Large. The following data is available: $\begin{array}{lll}&\text { Small }&\text { Large }\\\text { Selling price } p \text { er unit } & \$ 100 & \$ 210 \\\text { Variable cost per unit } & \$ 68 & \$ 138 \\\text { M achine hours required } & 3.2 & 10 \\\text { Total fixed costs } & & \$ 9,600\end{array}$ Bell Company can sell a maximum of 1,000 units of each size of table. Machine hour capacity is 8,000 hours per year.
Required:
a. Which table has the higher contribution margin per unit?
b. Which table has the higher contribution margin per hour?
c. How many tables of each size should be produced to maximize income, and what is the maximum income?

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Definitions:

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