Steel Factory Cost and Revenue Situation

A steel factory produces three different products. In November 2020, the following cost and revenue situation was achieved with full capacity utilization of the machines (1,900 hours): Sales volume (in units) Machine hours required Net revenue per unit (in CHF) Variable unit costs (in CHF) Total fixed costs (in CHF) Product Iron 2'000 600 40.- 26.- Product steel (in units): Product Steel 3'000 500 35.- 26.- 60'000.- a) Calculate the profit for the month of November 2020. Assume that all units produced can be sold. (7 points) Product Mlange (in units): Product Mlange 4'000 800 50.- 40.- b) In December 2020, a major repair must be carried out, which reduces the total capacity of the machines by 800 hours. Which products would you produce to optimize profits and how many units? The above sales volume for November 2020 is the maximum sales volume in December 2020. The remaining information on the cost and revenue situation remains the same as in November 2020. (8 points) Product mix month December 2020: Product iron (in units)