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Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (

Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows:
Machine
Component Shaper Grinder
164
245
342
The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of component 1 and up to 1,000 units of component 2 can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows:
Component Selling price Material Cost Labor Cost
1 $25 $12 $5
2 $18 $8 $4
3 $27 $13 $5
(a) For each component, calculate the profit margin (profit margin = selling price - material cost - labor cost).

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