Magnificent Products makes three products, each requiring two machine hours per unit to produce. The following information has been provided by the Sales Dept in relation to each product:

If the company has a limited production capacity, preventing all its budgeted sales from being produced, how should Magnificent rank its products for manufacture in order to maximize profitability?

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Macro Mezzo Micro Budgeted sales units 10,000 7,500 5,000 Selling price per unit 12 16 18 Variable costs per unit 6 7 4