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2 pt Grand Swell Company produces three types of high fat guy food-chicken wings. meatballs, and meat sticks (little chunks of meat wrapped in bacon
2 pt Grand Swell Company produces three types of high fat guy food-chicken wings. meatballs, and meat sticks (little chunks of meat wrapped in bacon on a toothpick). For some unknown reason, the company can sell all it produces of any of the products. Profit is limited only by a special machine through which all of the products must pass. Unit sales and cost data for the three products are as follows: Wings Meatballs Meat Sticks Sales price $10 12 15 Direct materials cost/unit 3 2 3 Direct labor cost/unit 3 2 4 Variable overhead/unit 1 2 2 Fixed overhead/month (allocated) $10,000 $10.000 12.000 Machine minutes 12 30 20 i meatballs, and meat sticks (little chunks of meat wrapped in bacon on a toothpick). For some unknown reason, the company can sell all it produces of any of the products. Profit is limited only by a special machine through which all of the products must pass. Unit sales and cost data for the three products are as follows: Wings Meatballs Meat Sticks Sales price $10 12 15 Direct materials cost/unit 3 2 3 Direct labor cost/unit 3 2 4 Variable overhead/unit 1 2 2 Fixed overhead/month (allocated) $10.000 $10,000 12.000 Machine minutes 12 30 20 Which product is most profitable, and which is least profitable. Show calculations to support your answer. Editor HTML
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