Cling CoProduces and Sells Three Products (X, Y, and Z)

Essay

Cling Co.produces and sells three products (X, Y, and Z).The following data relate to the three products.Labor is a fixed cost. $\begin{array}{lrrr}&X&Y&Z\\\text { Demand in units } & 190 & 200 & 210 \\\text { Selling price per unit } & \$ 160 & \$ 190 & \$ 180 \\\text { Raw materials costs per unit } & \$ 80 & \$ 100 & \$ 110 \\\text { Labor time in minutes per unit } & 20 & 28 & 12\end{array}$ Required:
1.Which is the most profitable product if there is no labor constraint?
2.Which is the most profitable product if there is a labor constraint?