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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. Finandal 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. Finandal data for the three grades are as follows: Revenues Type 5 $43,000 $34,000 8,000 Type 10 $49,000 $28,000 8,000 Variable cost Type 20 $56,500 $26,500 8,000 $34,500 Fixed cost $42,000 $36,000 Total cost Income from operations $1,000 $13,000 + 5,000 $22,000 + 5,000 Numer of units 5,000 Income f n operations per unit $ 0.20 $ 2.60 Mill's operations require all three grades to be melted in a furnace before being formed. The furnace 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: 6 hours Type 5: Type 10: Type 20: 6 hours 12 hours The Marketing Department is considering a new marketing and sales campaign Which product should be emphasized in the marketing and sales campaign in order to maximize profitability? Type 10 Determining the unit contribution margin per fumace hour will assist in making your decision. Round the unit contribution margin to two decimal places. Type 5 Type 10 Type 20 Unit contribution margin per fumace hour

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