1. Iota Manufacturing Co.

Scenario: Production Optimization Analysis

Product Details:

• Product P:
  • Variable Costs: $25,000
  • Fixed Costs: $15,000
  • Demand Forecast: 5,000 units

• Product Q:
  • Variable Costs: $20,000
  • Fixed Costs: $12,000
  • Demand Forecast: 4,000 units

Requirements:

• Analyze which product (P or Q) Iota Manufacturing Co. should prioritize based on contribution margin and profitability. Present findings in a decision-making table format.