Product-Profitability Analysis; Scarce Resources Creighton Corporation produces a varietyof consumer electronic products. Unit selling prices and costs for three models of one of its productlines are as follows:[LO 11-7]No Frills Standard Options SuperSelling price $40 $70 $86Direct materials 10 14 16Direct labor (@ $20/hour) 10 20 30Variable overhead 3 6 9Fixed overhead 3 6 6Variable overhead is charged to products on the basis of direct labor dollars; fixed overhead isallocated to products on the basis of machine hours.Required6. How can the optimum product mix be determined when there are more than two products and one ormore constraints?

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Product-Profitability Analysis; Scarce Resources Creighton Corporation produces a variety
of consumer electronic products. Unit selling prices and costs for three models of one of its product
lines are as follows:
[LO 11-7]
No Frills Standard Options Super
Selling price $40 $70 $86
Direct materials 10 14 16
Direct labor (@ $20/hour) 10 20 30
Variable overhead 3 6 9
Fixed overhead 3 6 6
Variable overhead is charged to products on the basis of direct labor dollars; fixed overhead is
allocated to products on the basis of machine hours.
Required
6. How can the optimum product mix be determined when there are more than two products and one or
more constraints?

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