Business, 22.01.2021 19:30 mona92

Zoom Corporation manufactures and sells three different types of binoculars. They are referred to as Good, Better and Best binoculars.

Grinding and polishing time is limited.

More time is required to grind and polish the lenses used in the Better and Best binoculars.

Additional information is provided below:

ProductGoodBetterBest
Selling price$97.80$322.50$834.00
Variable costs and expenses51.00180.00479.00
Contribution margin$46.80$142.50$355.00
Grinding and polishing time required0.6 hrs1.5 hrs5 hrs
Required:

1. Ignoring the time constraint, what strategy would appear to be optimal?

2. What is the contribution margin per unit of limited resource for each type of binocular?

(Round answer to 0 decimal places)

3. If additional grinding and polishing time could be obtained, how should the additional capacity be used?

Answers: 3

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Zoom Corporation manufactures and sells three different types of binoculars. They are referred to a...