Question
ABC Company produces three products:A, B, and C.The company only has 300 labor hours per week to produce these 3 products.Product information is as follows:
ABC Company produces three products:A, B, and C.The company only has 300 labor hours per week to produce these 3 products.Product information is as follows:
ABC
Unit selling price14075240
Unit variable Costs 10050180
Unit contribution margin 402560
Labor hours per unit 546
Maximum demand in units per week 15 20 30
What is the optimal product mix(how many A, B, and C should be produced) the company would produce for a week based on only having 300 labor hours and the demand for each product?Explain your answer and show computations.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
4th edition
78025524, 978-0078025525
