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Which of the three product models should be produced

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Question: Wayne, Inc. manufactures three sizes of kitchen appliances: small,

medium, and large. Product information is provided below.

small medium large

unit selling price $300 $500 $1000

unit costs (120) (240) (400)

variable manufacture

fixed manufacturing (80) (100) (240)

variable selling and administrative (60) (60) (60)

unit profit $40 $100 $300

demand in units 100 120 100

machine hours per unit 20 40 100

The maximum machine-hours available are 6,000 per week. Which of the three product models should be produced first if management incorporates a short-run profit maximizing strategy?

Reference no: EM132747855

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