Product Priong and Profit Aralysis with Botkenedk Operavions Hercules Steet company produces three grades of steel. high, goot, and regular grade. Each of these products (grades) hass high detmand in the maiket, and Mercules is able to seli as much os it can produce of all threg. The furmocn opecation is a bottleneck in the grocess and is running at 100 of ef capacity. Hercules wants to imarove steel operation profitabilith. The vanable converwon cost is 515 per grocess hour. The fixed cost is 5200,000 . In addibon, the cost analyst was able to determine the foliowing iaformation about the three products: The fumace operation is part of the total process for each of these three products. Thus, for example, 4.0 of the 120 bours tequired to process High Grade steel are assocated with the furnoce. Requiredl 1. Determine the unit conthbutian margin for each preduct. 2. Provide an analysis to determine the relative product profitability, assuming that the furnace is a bottleneck. Round your answers to two decimal places