Waterway 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		$90,000		$105,000		$150,000		$345,000
Variable costs		55,000		70,000		135,000		260,000
Fixed costs		25,900		18,500		18,500		62,900
Total costs		80,900		88,500		153,500		322,900
Operating income (loss)		$9,100		$16,500		$(3,500)		$22,100

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?

Waterway Co. select an option shouldshould not eliminate Product C.

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

Waterway Co. should produce select a product Product CProduct BProduct 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?

Waterway 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