Product Y can be sold immediately for 60 Liters of Y, 40 Liters of Z

Product Y can be sold immediately for $8 per liter or processed further into product B at an additional cost of $1 per liter. Product B can then be sold for $10 per liter.

Product Z can be sold immediately for $10 per liter or processed further into product A at an additional cost of $6 per liter. Product A can then be sold for $14 per liter.

Determine if these 2 products Product Y and Product Z should be sold at split off or processed further.

Explain your decision. Provide the total dollar generated in income for each product at split off and if processed further. Provide a recommendation based on your analysis to income.

Product Y income generates at split off Product Y income if process further into B.

Recommendation

Product Z income generates at split off Product Z income if process further into A

Recommendation

ABC Company produces three products: A, B, and C.

The company has 300 labor hours per week to produce these 3 products.

Product information is as follows:

ABC

Unit Selling Price14075240

Unit Variable Cost10050180

Unit Contribution Margin402560

Labor hours per unit546

Maximum demands in units per week152030

What is the optimal product mix(how many A, B, and C should be produced) the company would produce for a week based on only having 300 labor hours and the demand for each product? Explain answer and show computations.