Exercise 8-12 Crane, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $7 $8 $11 Variable cost per unit 2 5 6 Contribution margin per unit $5 $3 $5 Machine hours per unit 1 2.4 3 Demand in units 570 1,060 800 The company has only 2,000 machine hours available each month.How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small Medium Large Click if you would like to Show Work for this question: Open Show Work
Exercise 8-12 Crane, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $7 $8 $11 Variable cost per unit 2 5 6 Contribution margin per unit $5 $3 $5 Machine hours per unit 1 2.4 3 Demand in units 570 1,060 800 The company has only 2,000 machine hours available each month.How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.) Units Small Medium Large Click if you would like to Show Work for this question: Open Show Work
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 8-12
Crane, Inc. produces three types of balloons—small, medium, and large—with the following characteristics:
The company has only 2,000 machine hours available each month.
How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.)
| Small | Medium | Large | |||||
| Selling price per unit | $7 | $8 | $11 | ||||
| Variable cost per unit | 2 | 5 | 6 | ||||
| Contribution margin per unit | $5 | $3 | $5 | ||||
| Machine hours per unit | 1 | 2.4 | 3 | ||||
| Demand in units | 570 | 1,060 | 800 |
The company has only 2,000 machine hours available each month.
How many units of each type of balloon should the company make to maximize its total contribution margin? (Round answers to 0 decimal places, e.g. 5,275.)
| Units | |
| Small |
|
| Medium |
|
| Large |
|
| Click if you would like to Show Work for this question: |
Open Show Work
|
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