Question
A firm makes three products, Alpha, Beta and Gamma. Alpha Beta Gamma Sales price per unit $7.00 $10.00 $13.00 Variable cost per unit $4.00 $2.00
A firm makes three products, Alpha, Beta and Gamma.
Alpha
Beta
Gamma
Sales price per unit
$7.00
$10.00
$13.00
Variable cost per unit
$4.00
$2.00
$10.00
Demand
5,000
4,000
1,000
Machine hours used
0.5
2
1
The total available machine hours is 10,703.
How many of Gamma should be in the product mix to maximize the profit?
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Payroll Accounting 2018
Authors: Jeanette Landin, Paulette Schirmer
4th edition
1260005127, 1259742514, 1260005165, 126000516X, 978-1259742514
