Question
ABC Co. makes three products and provided the following Information. Product F G H $90 $70 $100 Selling price Variable costs $65 $55 $
ABC Co. makes three products and provided the following Information. Product F G H $90 $70 $100 Selling price Variable costs $65 $55 $ 70 machine time (minutes)required to make one unit of each product 20 6 6 Due to popularity of the products, demand exceeds ABC's production capacity. The machine has only 2,800 minutes available per week. Ignore fixed cost. Required: a. Which product should ABC emphasize? b. If there is still unfilled demand for the product ABC should emphasize in part (a), what's the maximum price ABC is willing to pay for an additional hour of machine time? a. Product to emphasize Price to pay for additional machine b. per hour hour
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