A company manufactures three products. Each unit of product X requires 10 machine hours, each unit of product Y requires 4 machine hours, and each unit of product Z requires 6 machine hours. The company's productive capacity is limited to 180,000 machine hours. Each unit of product X sells for $15 and has variable costs of $7. Each unit of product Y sells for $8 and has variable costs of $3. Each unit of Z sells for $12 and has variable costs of $4.
(a) Calculate the contribution margin per hour of each of the products.
(b) Determine the preferred sales mix if there are no market constraints on any of the products.
(c) Determine the preferred sales mix if the demand is limited to 20,000 units of each.

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The Answer of A company manufactures three products. Each unit of product X requires 10 machine hours, each unit of product Y requires 4 machine hours, and each unit of product Z requires 6 machine hours. The company's productive capacity is limited to 180,000 machine hours. Each unit of product X sells for $15 and has variable costs of $7. Each unit of product Y sells for $8 and has variable costs of $3. Each unit of Z sells for $12 and has variable costs of $4.
(a) Calculate the contribution margin per hour of each of the products.
(b) Determine the preferred sales mix if there are no market constraints on any of the products.
(c) Determine the preferred sales mix if the demand is limited to 20,000 units of each.

A Company Manufactures Three Products