Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C....
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Accounting
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
Product A
Product B
Product C
Sales price
$
43.00
$
53.00
$
83.00
Variable costs per unit
19.90
13.00
35.90
Fixed costs per unit
5.00
5.00
5.00
Required number of labor hours
1.50
2.50
3.00
Cordova currently is limited to 45,000 labor hours per month. Cordovas marketing department has determined the following demand for its products:
Product A
10,000
units
Product B
7,000
units
Product C
5,000
units
Required:
Given the companys limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)
Product
Units Produced
A
B
C
Answer & Explanation
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