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

Samson'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: 5 hours
Type 10: 10 hours
Type 20: 5 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 Type 10 Type 20 $20,800 S 8,000 4,000 $10,000 $12,000 9,000 $8,800 4,000 $ 2.20 $12,000 5,000 4,000 Revenues Variable cost Fixed cost Total cost Income from operations Number of units Income from operations per u $16,000 S6,000 4,000 6,000 4,000 1.50 3,000 4,000 S 0.75 nit