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AJ Company makes three products. Current selling price per unit, variable cost per unit, and machine hours required are as follows: Products X Y Z

AJ Company makes three products.

Current selling price per unit, variable cost per unit, and machine hours required are as follows:

Products

X

Y

Z

Current selling price per unit

$20

$30

$20

Variable cost per unit

10

18

12

Machine hours required for each unit

2

3

4

The company has a maximum of 1000 machine hours available per month.

If the company wants to produce only the most profitable product, what product should choose?

Determine the selling prices that the company would have to charge for each one of the products to make them equally profitable per machine hour

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