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Red Rock Enterprises is analyzing its sales mix to find out if its maximizing its profits. The company produces three similar items: Alpha, Beta, and

Red Rock Enterprises is analyzing its sales mix to find out if its maximizing its
profits. The company produces three similar items: Alpha, Beta, and Gamma. All
three products are made with the same equipment, and maximum productive
capacity measured in machine hours is now being used. Product line statistics are
as follows:
Alpha Beta Gamma
Current production and sales (units) 105,000 158,000 95,000
Machine hours per unit 10 50 13
Selling Price per unit $63 $48 $84
Variable cost per unit 33 26 49
Other variable cost per unit 20 16 19
Which product line is the most profitable.

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