Giant Inc Has 3,600 Machine Hours Available Each Month Required:
A

Essay

Giant Inc. has 3,600 machine hours available each month. The following information on the company's three surgical kits is available:
$\begin{array}{lrrr}&\text {Surgical Kit }&\text {Surgical }&\text {SurgicaL}\\&1&\text {Kit 2 }&\text { Kit 3}\\\text { Contribution margin per unit } & \$ 5.00& \$ 4.00 & \$ 2.50 \\\text { Machine hours per unit } & 2 & 1 & 3 \\\text { Sales demand in units } & 1.000& 800 & 900\end{array}$
Required:
a. What production schedule will maximize the company's profits?
b. What will be the maximum possible contribution margin?