Product mix decision. The Jackson Company has one machine on which it can produce either of two products, Y or Z. Sales demand for both products is such that the machine could operate at full capacity on either of the products, and Jackson can sell all output at current prices. Product Y requires one hour of machine time per unit of output and Product Z requires two hours of machine time per unit of output. The following information summarizes the per-unit cash inflows and costs of Products Y and Z.

	Product Y (per unit)	Product Z (per unit)
Selling Price	$30	$55
Materials	$ 4	$ 6
Labor	1	3
Allocated Portion of Fixed Costs	14	26
Total Cost per Unit	$19	$35
Gross Margin per Unit	$11	$20

Selling costs are the same whether Jackson produces Product Y or Z, or both; you may ignore them.

Required:

Should Jackson Company plan to produce Product Y, Product Z, or some mixture of both? Why?