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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 2,160 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 $ 147 $ 120 $ 36
Variable costs 107 59 28
Machine time per unit 3 hours 3 hours 1 hour
Monthly demand (units) 430 290 760

Required:

Determine how the 2,160 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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Allocated Machine Time Product X Product Y Product 2Z hours hours hours

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