The constrained resource at Calabria Corporation is a key raw material. A total of 9,900 ounces of the constrained resource are available. Data concerning the company's two products follow: Product S28 requires 2 ounces of the constrained resource; product M16 requires 13 ounces.
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?

Question

The constrained resource at Calabria Corporation is a key raw material. A total of 9,900 ounces of the constrained resource are available. Data concerning the company's two products follow:  Product S28 requires 2 ounces of the constrained resource; product M16 requires 13 ounces.
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?

Quizplus · Accepted Answer

The Answer of The constrained resource at Calabria Corporation is a key raw material. A total of 9,900 ounces of the constrained resource are available. Data concerning the company's two products follow:  Product S28 requires 2 ounces of the constrained resource; product M16 requires 13 ounces.
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?

The Constrained Resource at Calabria Corporation Is a Key Raw