10. Company EFG manufactures three products called A, B, and C. All three product have considerable market demand (exceeding what the company can make in a month). The

following is the per unit product data:

	A	B	C
Selling price	$229	$387	$835
Direct materials cost	$62	$82	$112
Direct labor cost	$26	$78	$104
Variable overhead costs	$11	$42	$63
Fixed overhead costs	$14	$25	$40
Variable selling and administrative expenses	$15	$41	$50
Fixed selling and administrative expenses	$56	$68	$87
Direct labor hours (DLH) per unit	2 DLH	6 DLH	8 DLH

All three products are made using the same direct labor hours (DLH); however, Company EFG only has 35,000 DLH available each month. It must produce a minimum of 500 units of each product and is not sure which product to make after meeting the minimum production requirements.

(a) Prepare a financial analysis that clearly shows how many units of each product Company EFG should produce each month to maximize its profitability. Your analysis should show how many units of each product the company should produce, how many total DLH it should use for each product, and what the total expected contribution margin would be if that production schedule is followed.

(b) In what order should Company EFG manufacture its products?State which one should be made first, which one should be made second, and which one should be made last. Briefly explain why you ordered them this way.