Question: The Lorenzo Company has one machine on which it can produce either of two products, Y or Z. Sales demand for both products is such

The Lorenzo Company has one machine on which it can produce either of two products, Y or Z. Sales demand for both products is such that the machine could operate at full capacity on either of the products, and Lorenzo can sell all output at current prices. Product Y requires one hour of machine time per unit of output and Product Z requires two hours of machine time per unit of output.
The following information summarizes the per-unit cash inflows and costs of Products Y and Z.

Selling costs are the same whether Lorenzo produces Product Y or Z, or both; you may ignore them. Should Lorenzo Company plan to produce Product Y, Product Z, or some mixture of both?Why?

Per Uni Product Y S30 $ 4 Product Z S55 S 6 Selling Price Materials 14 $19 gil 26 $35 $20 Allocated Portion of Fixed Costs lotal Cser it. Gross Margin per Unit 0

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