The product mix decision 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 3,600 hours per month. ABC Company wishes 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:

Product X Product Y Product Z Sellingprice. $300 $240 $76 Variablecosts. 210 120 60 Machine time perunit. 6 hours 4 hours 2 hours Monthly demand (units). 360 240 600 Required:

Determine how the 3,600 hours of machine time should be allocated to the three prod¬ ucts to provide the most profitable product mix.