Answer:
Bricktan Inc.
The total contribution margin if Bricktan chooses the most profitable sales mix is:
= $8,775,000.
Explanation:
a) Data and Calculations:
Basic Classic Deluxe Total
Maximum sales 75,000 420,000 120,000
Production hours available = 90,000
Units per hour 10 8 4
Hours required to meet sales 7,500 52,500 30,000 90,000 hrs
Contribution margin per unit $15 $25 $55
Contribution margin per hour $150 $200 $220
Total contribution margin $1,125,000 $1,050,000 $6,600,000 $8,775,000
