Tamarisk Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below:

		Product A		Product B		Product C		Total
Sales		$84,000		$106,000		$105,000		$295,000
Variable costs		42,000		71,000		95,000		208,000
Fixed costs		24,500		17,500		17,500		59,500
Total costs		66,500		88,500		112,500		267,500
Operating income (loss)		$17,500		$17,500		$(7,500)		$27,500

The company produces 1,000 units of each product. The companys capacity is 17,000 machine hours. The machine hours for each product are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.

If the current production levels are maintained, should the company eliminate Product C?

Tamarisk Co. select an option should notshould eliminate Product C.

If the company can sell unlimited quantities of any of the three products, which product should be produced?

Tamarisk Co. should produce select a product Product BProduct CProduct A.

Suppose the company can sell unlimited quantities of any of the three products. If a customer wanted to purchase 570 units of Product C, what would the minimum sale price per unit be for this order?

Minimum sale price

$enter the minimum sale price per unit in dollars

per unit

The company has a contract that requires it to supply 570 units of each product to a customer. The total market demand for a single product is limited to 1,500 units. How many units of each product should the company manufacture to maximize its total contribution margin including the contract?

Tamarisk Co. should manufacture
Product A		enter a number of units	units
Product B		enter a number of units	units
Product C		enter a number of units	units