=+Each of these products (grades) has high demand in the market, and Gemini is able to sell as much as it can produce of all three. The furnace operation is a bottleneck in the process and is running at 100% of capacity. Gemini wants to improve steel operation profitability. The variable conversion cost is $8 per process hour. The fixed cost is

$410,000. In addition, the cost analyst was able to determine the following information about the three products:

High Grade Good Grade Regular Grade Budgeted units produced 5,000 5,000 5,000 Total process hours per unit 15 15 12 Furnace hours per unit 5 4 3 Unit selling price $270 $250 $210