Sandhill, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $8 $11 $15 Variable cost per unit 2 5 6 Contribution margin per unit $6.00 $6.00 $9.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 500 1,040 940 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 enter a dollar amount rounded to 0 decimal places Medium enter a dollar amount rounded to 0 decimal places Large enter a dollar amount rounded to 0 decimal places
Sandhill, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $8 $11 $15 Variable cost per unit 2 5 6 Contribution margin per unit $6.00 $6.00 $9.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 500 1,040 940 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 enter a dollar amount rounded to 0 decimal places Medium enter a dollar amount rounded to 0 decimal places Large enter a dollar amount rounded to 0 decimal places
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sandhill, 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
|
$8 | $11 | $15 | ||||
|
Variable cost per unit
|
2 | 5 | 6 | ||||
|
Contribution margin per unit
|
$6.00 | $6.00 | $9.00 | ||||
|
Machine hours per unit
|
1.0 | 2.4 | 3.00 | ||||
|
Demand in units
|
500 | 1,040 | 940 |
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
|
enter a dollar amount rounded to 0 decimal places |
|
Medium
|
enter a dollar amount rounded to 0 decimal places |
|
Large
|
enter a dollar amount rounded to 0 decimal places |
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