Minaya Corporation Has Two Products, M20 and Y53, That Use

Essay

Minaya Corporation has two products, M20 and Y53, that use the same constrained resource--a critical raw material. Data concerning those products follow: $\begin{array}{lrr}&\text { M20 } &{\text { Y53 }} \\\text { Selling price. }&\$ 192.00 & \$ 220.00 \\\text { Variable cost }&\$ 153.60 & \$ 176.00 \\\text { Constrained resource required per unit (grams) }&8 & 10 \\\text { Demand (units) }&820 & 760\end{array}$ The total amount of the constrained resource available is 9,900 grams.
Required:
a. Which product is most profitable, given the company's constraint?
b. How much of each product should be produced?
c. What is the total contribution margin if your plan in part (b) above is followed?