A firm uses activity-based costing. Its activity rates are as follows. $100 per machine hours, $500 per batch start, $5 per order.

The firm produces several products. Two of these products have the following data.

Product 1: $100,000 revenue, $50,000 direct costs, 250 machine hours, 25 batch starts, 500 orders

Product 2: $95,000 revenue, $40,000 direct costs, 40 machine hours, 16 batch starts, 400 orders

The firms product sales mix is 1:2 for product 1 and 2, respectively.

Which of these re-mixes is MOST profitable to the firm? (Assume the same number of bundles would be sold.)

	a.	The firms product sales mix stays at 1:2 for product 1 and 2, respectively (i.e. the current product sales mix).
	b.	The firms new product sales mix is 0:3 for product 1 and 2, respectively.
	c.	The firms new product sales mix is 2:1 for product 1 and 2, respectively.
	d.	The firms new product sales mix is 3:0 for product 1 and 2, respectively.