Cling CoProduces and Sells Three Products (X, Y, and Z)

question 66

Essay

Cling Co.produces and sells three products (X, Y, and Z).The following data relate to the three products.Labor is a fixed cost. $\begin{array}{lrrr}&X&Y&Z\\\text { Demand in units } & 190 & 200 & 210 \\\text { Selling price per unit } & \$ 160 & \$ 190 & \$ 180 \\\text { Raw materials costs per unit } & \$ 80 & \$ 100 & \$ 110 \\\text { Labor time in minutes per unit } & 20 & 28 & 12\end{array}$ Required:
1.Which is the most profitable product if there is no labor constraint?
2.Which is the most profitable product if there is a labor constraint?

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Definitions:

Service Provider

A company or individual that offers services to others in exchange for payment.

Customer Expectations

The beliefs or standards that customers have regarding the quality, delivery, and benefits of products or services.

Time-Based Competition

A business strategy that focuses on reducing the time needed to conceive, develop, manufacture, and market products.

Competition

The rivalry among businesses to attract customers and achieve higher sales, profits, and market share.