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Sand Canyon Enterprises Is Analyzing Its Sales Mix to Find

question 7

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Sand Canyon Enterprises is analyzing its sales mix to find out if it is maximizing its profits. The company produces three similar items: X, Y, and Z. All three of these products are made with the same equipment, and maximum productive capacity measured in machine hours is now being used. Product line statistics are as follows:
XYZ Current production and sales (units) 105,000158,00095,000 Machine hours per unit 10513 Selling price per urit $63$48$84 Unit variable cost $33$26$49 Unit variable selling cost $17$13$16\begin{array} { l l l l } & \mathbf { X } & Y & Z \\\text { Current production and sales (units) } & 105,000 & 158,000 & 95,000 \\\text { Machine hours per unit } & 10 & 5 & 13 \\\text { Selling price per urit } & \$ 63 & \$ 48 & \$ 84 \\\text { Unit variable cost } & \$ 33 & \$ 26 & \$ 49 \\\text { Unit variable selling cost } & \$ 17 & \$ 13 & \$ 16\end{array} Determine whether the existing sales mix is the most profitable one possible. If your answer is no, offer your suggestion to improve the sales mix. Round answers to two decimal places.

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