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Please show all steps: GR Company makes three products. Current selling price per unit, variable cost per unit, and machine hours required are as follows:
Please show all steps:
GR Company makes three products. | |||
Current selling price per unit, variable cost per unit, and machine hours required are as follows: |
Products | |||
X | Y | Z | |
Current selling price per unit | $20 | $30 | $20 |
Variable cost per unit | 10 | 18 | 12 |
Machine hours required for each unit | 2 | 3 | 4 |
The company has a maximum of 1000 machine hours available per month. | |||
1. If the company wants to produce only the most profitable product, what product should choose? | |||
2. Determine the selling prices that the company would have to charge for each one of the products to make them equally profitable per machine hour. |
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