Auden Makes Three Types of Vitamin Supplements,all of Which Require

question 127

Essay

Auden makes three types of vitamin supplements,all of which require the use of encapsulating machines that have a capacity of 10,000 hours.Information on the three types (per case)is as follows: $$\begin{array} { l r r r } & \text { Basic } & \text { Vita-Stress } & \text { Antioxidant+ } \\\text { Selling price } & \$ 100 & \$ 125 & \$ 160 \\\text { Variable cost } & 50 & 70 & 90 \\\text { Machine hours } & 0.4 & 0.50 & 0.8\end{array}$$ A. What is the contribution margin per case for each type?
B. What is the contribution margin per hour of machine time for each type? Based on your analysis in requirement B, if the company can sell all that it can make of
C. all of the products, how many of each type should be sold to maximize total contribution margin?

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Definitions:

Cooperation

The act of working together towards a common goal or interest.

Developmental Sequence

The ordered progression through which a system, organism, or organizational process matures or evolves.

Failure

The state or condition of not meeting a desirable or intended objective, and may be viewed as the opposite of success.

Any Point

This term is too vague without context and may not represent a specific key term in its current form.