1.Robertas Robots Ltd. manufactures three different models basic, enhanced, and deluxe. Considerable market demand exists for all models. The following per unit data apply:

Basic EnhancedDeluxe

Selling price$400$500$600

Direct materials100150200

Direct labor ($20 per hour)405060

Variable support costs ($4 per machine hour)8060100

Fixed support costs606060

Gross profit$120$180$180

Required: If there is no excess machine capacity, which model(s) should the company produce to maximize profits? Why?