FULTON COMPANY FULTON Company produces two models, Alpha and Gamma, using George, a new manufacturing process. Information regarding Alpha and Gamma is summarized in the following table:

	Alpha	Gamma
Price per unit	$80	$60
Variable cost per unit	$50	$30
Amount of George processing time required per unit	6 hours	2 hours

George can only be used for 120 hours per week. FULTON Company has fixed costs of $720 per week.

Required: 1.

1. Compute the CM per unit of each product. Which is more profitable?
2. Compute the CM per HOUR of each product. If hours are what really matters, which is more profitable NOW?
3. Given the data above, assuming that there is no limit on the demand and that FULTON can produce as much of either product as they wish, they should produce how much of each product?
4. Assume the original 120-hour limit, but that there is a limited demand of 30 units of Gamma per week and 15 units of Alpha per week. How much of Alpha and Gamma should FULTON produce?