My company makes a product X, product Y, and product Z. They all require processing on specialized finishing machines. The compacity of these machines is 3,600 hours per month. My company wishes to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit.
- Product X Product Y Product Z
- Selling Price $300 $240 $76
- Variable costs 210 120 60
- Machine time per unit 6 hours 4 hours 2 hours
- Monthly demand 360 240 600
Determine how the 3,600 hours of machine time should be allocated to the three products to provide the most porfitable product mix