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Question 20 UnsavedBrickhaven Metals produces highquality polished steel and aluminum sheeting and two lines of industrial chassis (Standard and Deluxe). The contribution margin for steel sheeting is
Question 20 UnsavedBrickhaven Metals produces highquality polished steel and aluminum sheeting and two lines of industrial chassis (Standard and Deluxe). The contribution margin for steel sheeting is $0.50 per pound and for aluminum sheeting is $0.75 per pound. Brickhaven earns $20 contribution on the sale of a Standard chassis and $24 contribution on a Deluxe chassis. During the next production cycle, Brickhaven can buy and use up to 24,000 pounds of raw unfinished steel either in sheeting or in chassis manufacturing. Similarly, 21,500 pounds of aluminum are available. One standard chassis rack requires 12 pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 15 pounds of each metal. The output of metal sheeting is restricted only by the capacity of the polisher. For the next production cycle, the polisher can handle any mix of the two metals up to 6,000 pounds of metal sheeting. Chassis manufacture can be restricted by either metal stamping or assembly operations; no polishing is required. During the cycle no more than 2,500 total chassis can be stamped, and there will be 750 hours of assembly time available. The assembly time required is 24 minutes for the Standard chassis and 36 minutes for the Deluxe chassis. Finally, market conditions limit the number of Standard chassis sold to no more than 1,500 Standard and no more than 1,200 Deluxe. Any quantities of metal sheeting can be sold.
What is the maximum total contribution margin?
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