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:

Statistical Analysis

The process of collecting, reviewing, interpreting, and presenting data to discover underlying patterns and trends.

Mental Elements

Fundamental components or aspects of the mind that contribute to thought and consciousness.

Complexes

Psychological concepts referring to a core pattern of emotions, memories, perceptions, and wishes in the personal unconscious organized around a common theme.

Sentiments

To Cattell, environmental-mold source traits that motivate behavior.