Short Inc Has 5,200 Machine Hours Available Each Month Required:
A

question 85

Essay

Short Inc has 5,200 machine hours available each month.The following information on the company's three products is available:
$$\begin{array} { | l | r | r | r | } \hline & \text { Product } & \text { Product } & \text { Product } \\& \mathbf { 1 } & \mathbf { 2 } & \mathbf {3} \\\hline \begin{array} { l } \text { Contribution margin per } \\\text { unit }\end{array} & 345.00 & \$ 54.00 & \$ 22.50 \\\hline \text { Machine hours per unit } &\mathbf { 3 } & \mathbf { 2 } & \mathbf {1}\\\hline \text { Sales demand in units } & 900 & 1,000 & 3,000 \\\hline\end{array}$$

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:

Osmotic Pressure

The pressure required to prevent the flow of a solvent into a solution through a semipermeable membrane.

Plasma Proteins

Proteins found in plasma, the liquid component of blood, serving various functions including clotting, defense against pathogens, and transport of substances.

Body Temperature

The capacity of the body to produce and eliminate heat, essential for sustaining metabolic activities.

Erythrocytes

Red blood cells that are responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.