Sabat Corporation has two products-S94 and T88-that use the same constrained resource-a critical raw material. Data concerning those products follow:
The total amount of the constrained resource available is 10,400 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?

Question

Sabat Corporation has two products-S94 and T88-that use the same constrained resource-a critical raw material. Data concerning those products follow:  
The total amount of the constrained resource available is 10,400 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?

Quizplus · Accepted Answer

The Answer of Sabat Corporation has two products-S94 and T88-that use the same constrained resource-a critical raw material. Data concerning those products follow:  
The total amount of the constrained resource available is 10,400 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?

Sabat Corporation Has Two Products-S94 and T88-That Use the Same