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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Type 5 43,000 34,000 8,000 Type 10 $49000 $28000 8,000 Revenues Variable cost Fixed cost Total cost Income fiom operations Number of units Income from operations per unit Type 20 56,500 26,500 8,000 34,500 $22000 ÷5,000 440 $42000 6000 34500 $ 1,000 5,000 $13,000 4 5,000 $ 2.60 202.00