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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 2,800 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: Selling price Variable costs Machine time per unit Monthly demand (units) Product X $ 150 103 4 hours 410 Product Y $ 117 57 4 hours 290 Product z $ 39 30 1 hour 750 Required: Determine how the 2,800 hours of machine time should be allocated to the three products to provide the most profitable product mix. (Do not round intermediate calculations. Enter zero if no hours are needed.) Product X Product Y Product z Allocated Machine Time hours hours hours
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