Answer:
Bricktan Inc.
The total contribution margin if Bricktan chooses the most profitable sales mix is:
= $22,350,000.
Explanation:
a) Data and Calculations:
Basic Classic Deluxe
Sales units 100,000 460,000 170,000
Limited production capacity = 110,000 hours
Units per hour 10 8 4
Sales mix 10 8 4
Contribution per unit $15 $25 $55
Contribution per hour $150 $200 $220
Total production hours 10,000 57,500 42,500
Total contribution margin $1,500,000 $11,500,000 $9,350,000
Total contribution = $22,350,000
