Question
23. Castor Corp. produces three products, and is currently facing a labor shortage - only 11,400 hours are available this month. The selling price, costs,
23.
Castor Corp. produces three products, and is currently facing a labor shortage - only 11,400 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:
Product A | Product B | Product C | ||||
Selling price | $ | 190.00 | $ | 170.00 | $ | 180.00 |
Variable cost per unit | $ | 133.00 | $ | 68.00 | $ | 126.00 |
Direct labor hours per unit | 1.50 | 3.00 | 2.00 | |||
Demand | 3,800 | 7,600 | 1,900 | |||
How many of each product should be sold during the labor shortage to maximize profit?
Multiple Choice
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7,600 of Product A, 0 of Product B, and 0 of Product C.
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3,800 of Product A, 7,600 of Product B, and 1,900 of Product C.
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3,800 of Product A, 1,900 of Product B, and 0 of Product C.
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0 of Product A, 3,800 of Product B, and 0 of Product C.
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