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Large Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Unit selling price $420 $610

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Large Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Unit selling price $420 $610 $1240 Unit costs Variable mamafacturing (260) (510) Fixed manufacturing (60) (130) (290) Fixed selling and administrative (70 (115) (120) $30 $65 $320 (300) Unit profit Demand in units 130 160 130 Machine-hours per unit 50 40 130 The maximum machine hours available are 6200 per week. Which of the three product models should be produced first if management incorporates a short-run profit maximizing strategy? small appliance medium appliance large appliance both medium and large appliance

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