Sales Mix Decision
SE 8. Snow, Inc., makes three kinds of snowboards, but it has a limited number of machine hours available to make them. Product line data are as follows:
|
Wood |
Plastic |
Graphite |
|
|
Machine hours per unit |
1.25 |
1.0 |
1.5 |
|
Selling price per unit |
$100 |
$120 |
$200 |
|
Variable manufacturing cost per unit |
$45 |
$50 |
$100 |
|
Variable selling costs per unit |
$15 |
$26 |
$36 |
In what order should the snowboard product lines be produced?