Tuning Radio Corporation (TRC) makes two products, both of which use a common resource: direct labour-hours. The unit price of Product X is higher than the unit price of Product Y. Product X has a unit contribution margin of $20, and Product Y has a unit contribution margin of $18. Product X requires one hour per unit, and Product Y requires 0.75 hour per unit. As both products are widely popular, and TRC can sell all that it produces. The company is interested in maximizing its profits. What should the company do with regard to next week's production plan?

Answer rating: 100% (QA)

To maximize profits Tuning Radio Corporation TRC should allocate its limited direct laborhours to th... View the full answer