Excel memory company can sell all units of a computer memory x and y that it can produce, but it has limited production capacity. it can produce 2 units of x per hour or 3 units of y per hour, and it has 4,000 production hours available.

contribution margin is $5 for product x and $4 for product y.

1.) calculate contribution margin per production hour.

contribution margin per production hour.

product x product y
contribution margin per unit $5 $4
contribution margin per production hour

2.) what is the most profitable sales mix for this company ? choose from the following :

a.) allocate all of its production capacity to product y.

b.) allocate 40% of its production capacity to product x.

c.) allocate all of its production capacity to product x.

d.) allocate 24% of its production capacity to product y.