Red Rock Enterprises Is Analyzing Its Sales Mix to Find

question 71

Essay

Red Rock Enterprises is analyzing its sales mix to find out if it is maximizing its profits. The company produces three similar items: Alpha, Beta, and Gamma. 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:
$\begin{array}{|l|l|l|l|}\hline & \text { Alpha } & \text { Beta } & \text { Gamma } \\\hline \text { Current production and sales(units) } & 105,000 & 158,000 & \$ 5,000 \\\hline \text { Machine hours per unit } & 10 & \$ & 13 \\\hline \text { Selling price per unit } & \$ 63.00 & \$ 48.00 & \$ 84.00 \\\hline \text { Unit variable cost } & \$ 33.00 & \$ 26.00 & \$ 49.00 \\\hline \text { Unit variable selling cost } & \$ 20.00 & \$ 16.00 & \$ 19.00 \\\hline\end{array}$
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.

Recognize the importance and the process of problem recognition in consumer decision making.

Understand the significance of information search and how it varies among consumers.

Learn about the stages involved in the purchasing process of a product.

Grasp the concept and implications of evoked and inept sets in consumer choices.

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Definitions:

Present Moment

The current point in time, focused on the here and now, without concern for past or future events.

Sufism

A mystical Islamic belief system that seeks to find divine love and knowledge through direct personal experience of God.

Zen Meditation

Zen Meditation is a form of Buddhist practice that focuses on sitting meditation and the cultivation of awareness and insight into the nature of existence.

TM

Transcendental Meditation, a form of silent mantra meditation developed by Maharishi Mahesh Yogi, aimed at promoting relaxation and reducing stress.