Birdie Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17383 machine hours available a month. The three products have the following data: How much of product A should be produced? please walk me through how to solve this Solution Product A should not be produced at all. You have to search the contribution per unit of each product. The highest contribution should be preferred for production. Contribution per unit= Sales per unit- variable cost per unit. A= $6- $2 = $4 B= $16- $4 = $12 C= $11- $6 = $5 The preference of production would be B, then C, and then A, because, the higher contribution identifies the higher profit position. Machine hour is limited up to 17,383. B should require machine hour = machine hour per unit .

1. Birdie Co. makes three products, A, B and C.
They have a constrained resource - machine hours. There are only 17383 machine hours
available a month.
The three products have the following data:
How much of product A should be produced?
please walk me through how to solve this
A B C
Selling Price per unit 6.00 16.00 11.00
Variable Cost per unit 2.00 4.00 6.00
Machine hours required 2 4 5
Demand for product in units 1000 4000 1000
Solution
Product A should not be produced at all.
You have to search the contribution per unit of each product. The highest contribution should be
preferred for production.
Contribution per unit= Sales per unit- variable cost per unit.
A= $6- $2 = $4
B= $16- $4 = $12
C= $11- $6 = $5
The preference of production would be B, then C, and then A, because, the higher contribution
identifies the higher profit position.

2. Machine hour is limited up to 17,383.
B should require machine hour = machine hour per unit