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Company Fifteen makes expensive, hand-made handbags, - 'superior', 'royal', and 'imperial'. Unit costs and revenues relating to the three products are as follows: Superior Royal
Company Fifteen makes expensive, hand-made handbags, - 'superior', 'royal', and 'imperial'. Unit costs and revenues relating to the three products are as follows: Superior Royal $499 $799 $90 $190 $290 $60 $60 $120 $45 $85 $145 $50 $100 $100 $245 $435 $655 $254 $364 $744 Imperial Selling price per unit Direct materials Direct labour Variable overheads Fixed overheads Total costs Profit per unit $1,399 All three products use material which costs $500 per kilogram but there is not enough material to meet the demand for all three products. In what order should these three products be produced if the company wishes to maximise its profit
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