1. AMC Company produces three products, with costs and selling prices as follows:

		Product A		Product B		Product C
	Selling price per unit...............	$30	100%	$20	100%	$15	100%
	Variable costs per unit.............	18	60%	15	75%	6	40%
	Contribution margin per unit..	$12	40%	$ 5	25%	$ 9	60%

A particular machine is a bottleneck. On that machine, 3 machine hours are required to produce each unit of Product A, 1 hour is required to produce each unit of Product B, and 2 hours are required to produce each unit of Product C. In which order should it produce its products?

2. Two products, QI and VH, emerge from a joint process. Product QI has been allocated $9,600 of the total joint costs of $12,000. A total of 9,000 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $54,000 and then sold for $18 per unit. If product QI is processed further and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?

Please answer both for a thumbs-up! (: