The following diagram shows the flow process, raw material costs, and machine processing time for three products: A, B, and C. There are three machines (W, X, and Y) used in the production of these products; the times shown are in required minutes of production per unit. Raw material costs are shown in cost per unit of product. The market will take all that can be produced. Selling Price A $55 B $60 $75 3 min. Y 6 min. X 4 min. $10 ($15) $10 W 2 min. X 5 min. Y 6 min. $15 ($20) $20 X 1 min. W 2 min. W 5 min. $10 ($15) $30)

The following diagram shows the flow process, raw material costs, and machine processing time for three products: A, B, and C. There are three machines (W, X, and Y) used in the production of these products; the times shown are in required minutes of production per unit. Raw material costs are shown in cost per unit of product. The market will take all that can be produced. Selling Price A $55 B $60 $75 3 min. Y 6 min. X 4 min. $10 ($15) $10 W 2 min. X 5 min. Y 6 min. $15 ($20) $20 X 1 min. W 2 min. W 5 min. $10 ($15) $30)

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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The following diagram shows the flow process. Raw material cost, and machine processing time for three products: A, B, and C. There are three machines (W, X and Y) used in the production of these products; the times shown are in required minutes of production per unit. Raw material costs are shown in cost per unit of product. The market will take all that can be produced. Selling price A B C $ 55 $60 $ 75 $ 10----Y (2 min) $10---Y (5 min) $10---X (4 min) $ 15---W (3 min) $20---X (5 min) $15---Y (4 min) $ 15---X (2 min) $15—W (6 min) $ 30—W (6 min) Assuming that sales personnel are paid on a commission basis, which product should sell? A, B or C? On the basis of maximizing gross profits per unit, which product should be sold? A, B, or C 3.To maximize total profit for the firm, which…
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