=+E12-20 Product decisions under bottlenecked operations Obj 3 Samson Metals Inc. has three grades ofmetal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows:

Revenues Variable cost Fixed cost Total cost Income from operations Number of units Income from operations per unit Type 5 Type 10 Type 20

$16,000 $20,800 $12,000

$ 6,000 $ 8,000 $ 5,000 4,000 4,000 4,000

$10,000 $12,000 $ 9,000

$ 6,000 $ 8,800 $ 3,000 T 4,000 + 4,000 t 4,000

$ 1.50 $ 2.20 $ 0.75