Foam Pet Mattress Company can sell as many pet bed models A and B that it can produce, but the company has limited production capacity.

2. Foam Pet Mattress Company can sell as many pet bed models A and B that it can produce, but the company has limited production capacity. It can produce two units of A or three units of B per hour and it has 4,000 production hours available. The contribution margin for product A is $5 and for product B it is $4. What is the most profitable sales mix for the Foam Pet Mattress Company?

SOLUTION:Particulars A B ContributionHours per unit $5.000.50 $4.000.33 Contribution per limiting factorRanking $10.00II $12.00I Product B should be produced because it has high contribution…

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