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Grand Swell Company produces three types of high-fat guy food chicken wings, meatballs, and meat sticks. For some unknown reason, the company can sell all
- Grand Swell Company produces three types of high-fat guy food chicken wings, meatballs, and meat sticks. For some unknown reason, the company can sell all it produces of any of the products. Profit is limited only by a special machine through which all of the products must pass. Unit sales and cost data for the three products are as follows:
| Wings | Meat Balls | Meat Sticks |
Sale Price | $10 | $12 | $15 |
Direct Materials Cost/Unit | 3 | 2 | 3 |
Direct Labor Cost/Unit | 3 | 2 | 4 |
Variable Overhead/Unit | 1 | 2 | 2 |
Fixed Overhead/Month (Allocated) | 10,000 | 10,000 | 12,000 |
Machine Minutes | 12 | 30 | 20 |
Required:
-Which product is most profitable, and which is least profitable. Show calculations to support your answer.
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