Question

Mill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows:


Mill’s operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production bottleneck. The furnace hours required per unit of each product are as follows:
Type 5: ........ 6 hours
Type 10: ........ 6 hours
Type 20: ........ 12 hours
The Marketing Department is considering a new marketing and sales campaign. Which product should be emphasized in the marketing and sales campaign in order to maximizeprofitability?


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  • CreatedJune 27, 2014
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