Cling Co Produces and Sells Three Products (X, Y, and Z)

question 26

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. 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:

Clock Speed

The speed at which a processor executes instructions, measured in cycles per second or hertz (Hz).

Optical Storage

A type of storage medium that uses lasers and lights to read and write data on discs like CDs, DVDs, and Blu-ray.

Flash Drive

A drive that plugs into a universal serial bus (USB) port on a computer and that stores data digitally. Also known as jump drive, USB drive, or thumb drive.

CPU Usage

The amount of processing power that a computer's central processing unit (CPU) is using at any given time, typically expressed as a percentage.