Exercise 16.18 The product mix decision ABC Company produces product X. product Y, and LO...
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Accounting
Exercise 16.18 The product mix decision ABC Company produces product X. product Y, and LO 2, 3 product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 1,200 hours per month. ABC Company wishes to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product: Seling price Variable costs Machine time per unit Monthly dernand (units) Product X $100 70 3 hours 300 Product Y $80 40 2 hours 200 1 hour 500 Required: Determine how the 1,200 hours of machine time should be allocated to the three products to provide the most profitable product mix
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