Mendosa Company produces three products. All the products use a furnace operation, which is a pro¬ duction bottleneck. The following information is available:

Product 1 Product 2 Product 3 Unit volume—March 1,000 1,500 1,000 Per unit information:

Sales price

$35

$33

$29 Variable cost 15 15 15 Contribution margin

$20

$18

$14 Furnace hours 4

3 2

From a profitability perspective, which product should be emphasized in April’s advertising cam¬ paign?

A. Product 1 C. Product 3 B. Product 2 D. All three.

AppendixLO1