Blossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics: Small Medium Large Selling price per unit $9 $8 $15 Variable cost per unit 3 5 6 Contribution margin per unit $6.00 $3.00 $9.00 Machine hours per unit 1.0 2.4 3.00 Demand in units 620 1,100 950 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.) UnitsSmallenter a dollar amount rounded to 0 decimal placesMediumenter a dollar amount rounded to 0 decimal placesLargeenter a dollar amount rounded to 0 decimal places Blossom, Inc. produces three types of balloons-small, medium, and large-with the following characteristics:SmallMediumLargeSelling price per unit$9$8$15Variable cost per unit56Contribution margin per unit$6.00$3.00$9.00Machine hours per unit1.02.43.00Demand in units6201,100950The 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 0decimal places, eg. 5,275.)UnitsSmallMediumLarge

Since the machine hours are limited, it needs to be considered while making the decision so as to…

Answered: Blossom, Inc. produces three types of…

Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

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Blossom, Inc. produces three types of balloons—small, medium, and large—with the following characteristics:

	Small	Medium	Large
Selling price per unit	$9	$8	$15
Variable cost per unit	3	5	6
Contribution margin per unit	$6.00	$3.00	$9.00
Machine hours per unit	1.0	2.4	3.00
Demand in units	620	1,100	950

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

Blossom, Inc. produces three types of balloons-small, medium, and large-with the following characteristics:
Small
Medium
Large
Selling price per unit
$9
$8
$15
Variable cost per unit
5
6
Contribution margin per unit
$6.00
$3.00
$9.00
Machine hours per unit
1.0
2.4
3.00
Demand in units
620
1,100
950
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, eg. 5,275.)
Units
Small
Medium
Large

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