5. A company produces three different products that all require processing on the same machines. There are only 27,000 machine hours available in each year. Production information for each product is:

ABC

Sales price per unit ...................................... Variable costs per unit ............................... Machine hours necessary to produce one unit

$20.00 $12.00 2.5

$38.00 $26.00 4.0

$35.00 $17.00 4.50

Required: Show your work (1) Determine the preferred sales mix if there are no market constraints on any of the products. (2) How many units should be made of the preferred product?