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ABBC Inc. produces three different products. Information about these products can be found above: Unit selling price Unit costs: Variable manufacturing Fixed manufacturing Fixed selling

ABBC Inc. produces three different products. Information about these products can be found above:


 

Unit selling price Unit costs: Variable manufacturing Fixed manufacturing Fixed selling and administrative Unit profit Machine-hours per unit regular deluxe $290 $430 -$170 -$50 -$50 $20 30 The maximum machine-hours available per week: Demand in units -$320 -$140 regular -$25 -$55 20 3810 190 over the top $820 Required: 1. If considerable market demand exists for all products, which product would be most profitable to produce? -$490 -$240 -$110 -$20 2. If there is only a limited demand for each product as shown below, how many of each product should be produced per week using the short-run profit maximizing strategy? 105 deluxe over the top 150 110

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