ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 2,250 hours per month. ABC Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product: Selling price Variable costs Machine tine per unit Monthly demand (units) Product X $148 103 Product X Product Y Product Z 3 hours Allocated Machine Time hours hours hours 460 Product Y $121 62 3 hours 290 Product Z $ 37 31 1 hour Required: Determine how the 2.250 hours of machine time should be allocated to the three products to provide the most profitable product mix. (Do not round intermediate calculations. Enter zero if no hours are needed.) 750
ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 2,250 hours per month. ABC Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product: Selling price Variable costs Machine tine per unit Monthly demand (units) Product X $148 103 Product X Product Y Product Z 3 hours Allocated Machine Time hours hours hours 460 Product Y $121 62 3 hours 290 Product Z $ 37 31 1 hour Required: Determine how the 2.250 hours of machine time should be allocated to the three products to provide the most profitable product mix. (Do not round intermediate calculations. Enter zero if no hours are needed.) 750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishnu
Transcribed Image Text:ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines.
The capacity of these machines is 2,250 hours per month. ABC Company wants to determine the product mix that should be achieved
to meet the high demand for each product and provide the maximum profit. Following is information about each product:
Selling price
Variable costs
Machine tine per unit
Monthly demand (units)
Product X
Product Y
Product Z
Product X
$148
103
Allocated Machine Time
hours
hours
hours
3 hours
460
Product Y
$ 121
62
3 hours
290
Required:
Determine how the 2.250 hours of machine time should be allocated to the three products to provide the most profitable product mix.
(Do not round intermediate calculations. Enter zero if no hours are needed.)
Product Z
$ 37
31
1 hour
750
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