The Ajax Manufacturing Company produces four different tables: models T1, T2, T3, and T4. A limitation of 2,000 machine-hours per week prevents Ajax Manufacturing Company from meeting the sales demands for its products. The product information is as follows: T1 T2 T3 T4 Unit selling price $800 $500 $250 $500 Unit variable costs -$600 -$250 -$200 -$300 Unit contribution margin $200 $250 $50 $200 Machine-hours per unit 20 40 20 40 Assume the maximum weekly demand for each product is as follows: Product Demand T1 80 units T2 20 units T3 70 units T4 10 units Under these circumstances, how many units of each product should the company produce per week to maximize short-run profits

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?