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Which is the most profitable for ABC Company

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Reference no: EM133032303

Question - ABC Company manufactures four products. Direct materials and direct labor 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:

 

Product A

Product B

Product C

Product D

Selling price per unit

$36

$42

$46

$56

Variable cost per unit

$19

$16

$25

$37

Unit produced per machine hour

3

4

2

3

Required - Of the four products, which is the most profitable for ABC Company?

Reference no: EM133032303

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