Yumin Metals Inc. has three grades of metal product, Type A1, Type B3, and Type E6. Financial data for the three grades are as follows:

Yumin Metals’ operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production bottleneck. The furnace hours required per unit of each product are as follows:
Type A1: .... 8 hours
Type B3: ..... 10 hours
Type E6: ..... 6 hours

The Marketing Department is considering a new marketing and sales campaign. Which product should be emphasized in the marketing and sales campaign in order to maximizeprofitability?

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Type E6 $300,000 $270,000 20,000 $290,000 10,000 +5,000 Income from operations per unit 300 480 200 Revenues Variable cost Fixed cost Total cost Income from operations Number of units Type A1 $400,000 $250,000 105,000 $355,000 S 45,000 15,000 Type B3 $578,000 $380,000 118,800 $498,800 79,200 16,500