Roberta's Robots Ltd. manufactures three different models -basic, enhanced, and deluxe. Considerable market demand exists for all models. The...

1.    Roberta’s Robots Ltd. manufactures three different models –basic, enhanced, and deluxe. Considerable market demand exists for all models. The following per unit data apply:

                        Basic   Enhanced       Deluxe

           Selling price    $400   $500   $600

           Direct materials           100     150     200

           Direct labor ($20 per hour)     40       50       60

           Variable support costs ($4 per machine hour) 80       60       100

           Fixed support costs      60     60     60

            Gross profit    $120   $180   $180

Required: If there is no excess machine capacity, which model(s) should the company produce to maximize profits? Why?