Question: Problem 3 . The senior management at ABC would like to determine if it is possible to improve firm profitability by changing their existing product

Problem 3. The senior management at ABC would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently the product mix is determined by giving resource priority to the highest contribution margin. The company has 10 workers on hand, each worker is paid $25 per hour. Overhead costs are $35,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. Detailed production information is provided below. Model AModel BModel CPrice$400$360$390Material Cost$50$40$110Weekly demand1007540Processing time Station 160 min0 min30 minProcessing time Station 20 min0 min60 minProcessing time Station 310 min60 min0 minProcessing time Station 420 min30 min40 minWhat is the product mix that yields the maximum total gross profit? What is the resulting profit?

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