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Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Large $1240 Medium Small Unit selling price $410

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Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Large $1240 Medium Small Unit selling price $410 $630 Unit costs: Variable manufacturing Fixed manufacturing Fixed selling and administrative Unit profit (500) (270) (170) $300 (240) (40) (80) $50 (290) (150) (85) $105 Demand in units 130 140 130 Machine-hours per unit 60 40 130 The maximum machine-hours available are 6300 per week. a short-run profit maximizing strategy? Which of the three product models should be produced first if management incorporates O small appliance O medium appliance O large appliance O both medium and large appliance

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