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

question 135

Essay

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

Required:
a.What production schedule will maximize the company's profits?
b.What will be the maximum possible contribution margin?

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