Marshall currently produces three products and the following information is available:

Product A Product B Product C

Contribution margin per unit $300 $400 $150

Machine hours per unit 3.0 2.0 0.5

Weekly demand (units) 175 225 560

Current production & sales ratio 7 9 2

Fixed costs are presently $65,000 which provide for 1,000 machine hours per week, fully-utilised.

1. What is Marshalls current weekly profit?
2. What is Marshalls maximum potential weekly profit?
3. Which of the following three statements most applies to the Marshall question? Why?
   1. If you dont understand the costs, you dont understand the business
   2. If the strategy doesnt work at the level of managerial accounting, the strategy doesnt work at all
   3. Optimise use of the scarce resource