Acme Company produces and sells three products—P, Q and R. T…

Questions

Acme Cоmpаny prоduces аnd sells three prоducts—P, Q аnd R. Total annual customer demand is 3,000 units for Product P, 2,000 units for Product Q, and 2,400 units for Product R. The contribution margin per unit is $108 for Produce P, $119 for Product Q, and $95 for Product R. It takes 3.0 machine hours to produce one unit of Product P, 3.5 machine hours to produce one unit of Product Q, and 2.5 machine hours to produce one unit of Product R. Acme’s current capacity is 14,000 machine hours per year. What is the maximum amount that Acme should be willing to pay per machine hour to acquire an additional 1,000 machine hours of capacity?