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A company produces three products, Round, Square, and Triangle, with the following costs and selling prices: Round Square Triangle Selling price per unit $24 $26
A company produces three products, Round, Square, and Triangle, with the following costs and selling prices: Round Square Triangle Selling price per unit $24 $26 $20 Variable cost per unit $10 $10 $12 Machine Hour usage per unit (MH) 2 MH 4 MH 4 MH The company has a limit of 14,400 machine hours available per month. The company has a monthly fixed cost of $30,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the company can rent a machine that will provide an additional 1,000 machine hours per month. What is the maximum monthly rent the company would be willing to pay for this machine? Multiple Choice $3,500 $3,200 $2,000 $4,000
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