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ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines. The capacity of these machines is

ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 2,250 hours per month. ABC Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product:

Product X Product Y Product Z
Selling price $ 151 $ 120 $ 38
Variable costs 105 58 30
Machine time per unit 3 hours 3 hours 1 hour
Monthly demand (units) 440 310 755

Required:

Determine how the 2,250 hours of machine time should be allocated to the three products to provide the most profitable product mix. (Do not round intermediate calculations.)

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