Contribution margin per constraint
Zion Metals Inc. has three grades of metal product. Al, B V and E6. Financial data for the three grades are as follows:
Zion Metals' operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day. 7 days a week, and is a production constraint. The furnace hours required per unit of each product are as follows:
The Marketing Department is considering a new marketing and sales campaign. Which product should be emphasized in the marketing and sales campaign in order to maximize profitability?
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