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5 Product A Product B Product C Estimated customer demand 500 900 800 Selling price per unit $80 $65 $45 Variable cost per unit $35
5 | |||||||||||
Product A | Product B | Product C | |||||||||
Estimated customer demand | 500 | 900 | 800 | ||||||||
Selling price per unit | $80 | $65 | $45 | ||||||||
Variable cost per unit | $35 | $26 | $20 | ||||||||
Machine-hours per unit | 2.5 | 3 | 1.25 | ||||||||
The company has only 2,800 machine-hours available. Which product offers the most profitable use of the machine? | |||||||||||
A | Product A | ||||||||||
B | Product B | ||||||||||
C | Product C | ||||||||||
D | Unable to determine from the information given | ||||||||||
Answer |
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