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4) Happy Pharmaceuticals produces three products using one machine. The machine has a total capacity of...

4) Happy Pharmaceuticals produces three products using one machine. The machine has a total capacity of 200 machine hours. Data for each product is as follows:  

Product

Sales price per unit

Variable cost per unit

Machine hours per unit

Market demand (units per week)

A

$17

$13

1

150

B

$25

$20

5

50

C

$2

$1

0.5

200

a. How many units of product C should the firm produce?

b. What is the maximum contribution margin the firm can achieve?

c. What is the most the firm should pay to increase its capacity by 200 machine hours?

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