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
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...
Related questions
Question
100%
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 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning