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A-3 (Algo) A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is

A-3 (Algo) A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1, X2, and X3. Machine hours required per unit are PRODUCT MACHINE TYPE X1 X2 X3 Milling machine 6 2 4 Lathe 4 4 3 Grinder 0 2 1 The available time in machine hours per week is MACHINE HOURS PER WEEK Milling machines 960 Lathes 480 Grinders 350 The salespeople estimate they can sell all the units of X1 and X2 that can be made. But the sales potential of X3 is 100 units per week maximum. Unit profits for the three products UNIT PROFITS X1 $ 11 X2 8 X3 13

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