Question: Question 7 (5 points) Redner, Inc. produces two products. Data concerning the two products appear below: Selling price Variable costs Fixed costs Grinding machine

Question 7 (5 points) Redner, Inc. produces two products. Data concerning the two products appear below: Selling price Variable costs Fixed costs Grinding machine time Products A B $70 $95 45 65 15 5 min 12 8 min Fixed costs are applied to the products on the basis of direct labour hours. Demand for the two products exceeds the company's productive capacity. The grinding machine is the constraint, with only 2,400 minutes of grinding machine time available this week. Required: Which product is more profitable? Show calculations to support your response. (5 marks)

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