Magnificent Products makes three products, each requiring two machine hours per unit to produce. The following information has been provided by the sales department in relation to each product:
|
Macro |
Mezzo |
Micro |
|
|
Budgeted sales units |
10,000 |
7,500 |
5,000 |
|
Selling price per unit |
£12 |
£16 |
i18 |
|
Variable costs per unit |
£6 |
£7 |
£4 |
If the company has a limited production capacity, preventing all its budgeted sales from being produced, how should Magnificent rank its products for manufacture in order to maximize profitability?