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7-16 Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs
7-16
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 35 17 5 1.25 Product B $ 45 21 5 2.00 Product c $ 75 32 5 2.50 Cordova currently is limited to 40,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product B Product C 18,000 units 12,000 units 4,000 units Required: Given the company's 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 ProducedStep by Step Solution
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