Azure Company has 10,000 hours of capacity and manufactures two products. Product EZT takes 2 hours per unit. Product GLA takes 3 hours per unit. The contribution margin per unit for Product EZT is $5. The contribution margin per unit for Product GLA is $6. The demand for either product exceeds the factory capacity. Which product or products should be manufactured?

Question

Azure Company has 10,000 hours of capacity and manufactures two products. Product EZT takes 2 hours per unit. Product GLA takes 3 hours per unit. The contribution margin per unit for Product EZT is $5. The contribution margin per unit for Product GLA is $6. The demand for either product exceeds the factory capacity. Which product or products should be ​ manufactured?

Quizplus · Accepted Answer

The Answer of Azure Company has 10,000 hours of capacity and manufactures two products. Product EZT takes 2 hours per unit. Product GLA takes 3 hours per unit. The contribution margin per unit for Product EZT is $5. The contribution margin per unit for Product GLA is $6. The demand for either product exceeds the factory capacity. Which product or products should be ​ manufactured?

Azure Company Has 10,000 Hours of Capacity and Manufactures Two