Sheridan, Inc. produces three types of balloons-small, medium, and large-with the following characteristics: Small Medium Large Selling price per unit $8 $11 $18 Variable cost per unit Contribution margin per unit $5.00 $6.00 $12.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 500 1,160 830 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
Sheridan, Inc. produces three types of balloons-small, medium, and large-with the following characteristics: Small Medium Large Selling price per unit $8 $11 $18 Variable cost per unit Contribution margin per unit $5.00 $6.00 $12.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 500 1,160 830 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheridan, Inc. produces three types of balloons-small, medium, and large-with the following characteristics:
Small
Medium
Large
Selling price per unit
$8
$11
$18
Variable cost per unit
Contribution margin per unit
$5.00
$6.00
$12.00
Machine hours per unit
1.0
2.4
3.00
Demand in units
500
1,160
830
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
Gress marain-Saloc Cost/Salas
Ready
FII
F10
F9
F8
F7
F6
吕口。
F4
F3
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