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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 2,190 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 S152 103 Product Y $120 58 Product Z S 36 29 Seling price Variable costs Machine time per unit Monthly demand (units) 3 hours 3 hours 1 hour 440 290 755 Required: Determine how the 2,190 hours of machine time should be allocated to the three products to provide the most profitable product mix. (Do not round intermediate calculations.) Allocated Machine Time ProductX ProductY Product Z hours hours hours
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