Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is...
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Accounting
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows:
| Product | Selling Price per Unit | Variable Cost per Unit | Fixed Cost per Unit | DL Hours per Unit | ||||||||||||||||||
| A | $ | 4.00 | $ | 2.00 | $ | 3.00 | 3 | |||||||||||||||
| B | $ | 4.50 | $ | 1.50 | $ | 3.00 | 3 | |||||||||||||||
| C | $ | 6.00 | $ | 2.00 | $ | 5.00 | 5 | |||||||||||||||
The objective function for a linear program to maximize contribution margin from the set of three products is:
Multiple Choice
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Z = $2A + $3B + $4C.
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Z = $5A + $4.5B + $7C.
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Z = $4A + $4.5B + $6C.
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Z = $1A + $1B + $1C.
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Z = $2A + $1.5B + $2C.
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