Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Relax Spas provides two types of massage services, the Full Body and the Trouble Spots, with unit contribution margins of $198 and $90, respectively. Regardless of type, each massage use of a certified masseuse. Relax Spas has four masseuses on staff who each work 1,500 hours per year. Each Full Body massage uses 90 minutes of masseuse time, and each Trouble S uses 30 minutes of masseuse time. Assume that a maximum of 8,000 massages of each type can be sold. Required: 1. What is the contribution margin per hour of masseuse time for each type of massage? Full body Contribution Margin per hour per hour Trouble spots 2. What is the optimal mix of massages? Optimal Mix Full body massages Trouble spots massages 3. What is the total contribution margin earned for the optimal mix? Be sure to use the whole number units computed in #2. units units 4
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Relax Spas provides two types of massage services, the Full Body and the Trouble Spots, with unit contribution margins of $198 and $90, respectively. Regardless of type, each massage use of a certified masseuse. Relax Spas has four masseuses on staff who each work 1,500 hours per year. Each Full Body massage uses 90 minutes of masseuse time, and each Trouble S uses 30 minutes of masseuse time. Assume that a maximum of 8,000 massages of each type can be sold. Required: 1. What is the contribution margin per hour of masseuse time for each type of massage? Full body Contribution Margin per hour per hour Trouble spots 2. What is the optimal mix of massages? Optimal Mix Full body massages Trouble spots massages 3. What is the total contribution margin earned for the optimal mix? Be sure to use the whole number units computed in #2. units units 4
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint
Relax Spas provides two types of massage services, the Full Body and the Trouble Spots, with unit contribution margins of $198 and $90, respectively. Regardless of type, each massage
use of a certified masseuse. Relax Spas has four masseuses on staff who each work 1,500 hours per year. Each Full Body massage uses 90 minutes of masseuse time, and each Trouble S
uses 30 minutes of masseuse time.
Assume that a maximum of 8,000 massages of each type can be sold.
Required:
1. What is the contribution margin per hour of masseuse time for each type of massage?
Contribution Margin
Full body
Trouble spots
2. What is the optimal mix of massages?
per hour
per hour
Optimal Mix
Full body massages
Trouble spots massages
3. What is the total contribution margin earned for the optimal mix? Be sure to use the whole number units computed in #2.
units
units
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