Firm Z manufactures 3 products using the same machine. At the weekly market demand for the product (see below), the firm is limited in terms of machine capacity - 450 hours per week.

Product Machine hours required per unit of product Maximum demand in units Contribution margin per unit

A 3 hours machinery hours, maximum demand in units 100, Contribution margin 9

B 2 hours machinery hours, maximum demand in units 100, contribution margin 7

C 1 hour machinery hours, maximum demand in units 100, contribution margin 5

Required:

a) How many units of each product should the firm produce?

b) How much is the contribution (money) of each product in terms of machine hours used?

c) If the machine hours were limited to 300 hours, which product would you recommend to cease from the production process?