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Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100...

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Accounting

Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply:

Standard Premium

Contribution margin per unit $18 $20

Number of machine-hours required 3 4

Required:

1. Calculate the CM per machine hour.

2. If there are 496 machine hours available per week, how many rockers of each model should Jim Helmer product to maximize profits?

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