Cost and revenue data for the products


Problem: Speedy Co. manufactures four products. Direct materials and direct labour are available in sufficient quantities, but machine capacity is limited to 3,000 hours. Cost and revenue data for the four products are given below:

                                    A      B     C     D
Selling price per unit      36    42    46    56
Variable cost                 19    16    25    37
Units produced per         3      4      2      3
machine hour

Based on your calculations, which of the four products which is the most profitable for Speedy Co.?

A. Product A.

B. Product B.

C. Product C.

D. Product D.

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Marketing Management: Cost and revenue data for the products
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