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Product Decisions Under Bottlenecked Operations Mill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the

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Product Decisions Under Bottlenecked Operations Mill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows: Type 5 Type 10 Type 20 Revenues $43,000 $49,000 $56,500 Variable cost $34,000 $28,000 $26,500 Fixed cost 8,000 8,000 8,000 Total cost $42,000 $36,000 $34,500 Income from operations $1,000 $13,000 $22,000 Number of units + 5,000 +5,000 + 5,000 Income from operations per unit $0.20 $2.60 $4.40 Mill's operations require all three grades to be melted in a furnace before being formed. The fumace runs 24 hours a day, 7 days a week, and is a production bottleneck. The furnace hours required per unit of each product are as follows: Type 5: 6 hours Type 10: 6 hours Type 20: 12 hours The Marketing Department is considering a new marketing and sales campaion Which product should be emphasized in the marketing and sales campaign in order to maximize profitability? a Determining the unit contribution margin per furnace hour will ansat in making your decision. Round the unit contribution margin to two decimal places Type 5 Type 10 Type 20 Unit contribution maroin perfurnace hour

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