Mendosa Company produces three products. All the products use a furnace operation, which is a production bottleneck. The following information is available:
|
|
Product 1 |
Product 2 |
Product 3 |
|
Unit volume—March |
1,000 |
1,500 |
1,000 |
|
Per unit information: |
|
|
|
|
Sales price |
$35 |
$33 |
$29 |
|
Variable cost |
15 |
15 |
15 |
|
Unit contribution margin |
$20 |
$18 |
$14 |
|
Furnace hours |
4 |
3 |
2 |
From a profitability perspective, which product should be emphasized in April’s advertising campaign?
A. Product 1
B. Product 2
C. Product 3
D. All three