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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

  • 7,600 of Product A, 0 of Product B, and 0 of Product C.

  • 3,800 of Product A, 7,600 of Product B, and 1,900 of Product C.

  • 3,800 of Product A, 1,900 of Product B, and 0 of Product C.

  • 0 of Product A, 3,800 of Product B, and 0 of Product C.

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