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Part B: (5 marks) Viva Enterprises is analyzing its sales mix to find out if it is maximizing its profits. The company produces three similar
Part B: (5 marks) Viva Enterprises is analyzing its sales mix to find out if it is maximizing its profits. The company produces three similar items: Alpha, Beta, and Gamma. All th these products are made with the same equipment, and maximum productive capacity measured in machine hours is now being used. Product line statistics are as follows: Alpha Beta Gamma Current production and sales (units) 105,000 158,000 95,000 Machine hours per unit 10 5 13 Selling price per unit $63.00 $48.00 $84.00 Unit variable cost $33.00 $26.00 $49.00 Unit variable selling cost $20.00 $16.00 $19.00 Determine whether the existing sales mix is the most profitable one possible. Round answers to two decimal places
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