Final answer:
To determine the maximum total contribution margin Zahra can obtain by optimizing the product mix, we need to know the contribution margin per machine-hour for each product. We can then allocate the maximum machine-hours available to each product in a way that maximizes the total contribution margin.
Step-by-step explanation:
In order to determine the maximum total contribution margin, we need to know the contribution margin per machine-hour for each product.
Once we have that information, we can calculate the maximum total contribution margin by multiplying the contribution margin per machine-hour by the maximum machine-hours available.
Let's say we have two products, A and B, with contribution margins per machine-hour of $10 and $15 respectively. To optimize the product mix, we need to allocate the maximum machine-hours available to each product in a way that maximizes the total contribution margin.
For example, if we allocate 8000 machine-hours to Product A and 3000 machine-hours to Product B, the maximum total contribution margin Zahra can obtain would be:
Total contribution margin = (8000 * $10) + (3000 * $15) = $80,000 + $45,000 = $125,000.