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Allocating constrained resources - Umbrella Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: The company

Allocating constrained resources - Umbrella Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:

The company has only 1,800 direct labor hours available to commit to production of any new products.

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How many of each product should Umbrella Co. produce and sell to maximize its profit?

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Sales price Variable costs Fixed costs Labor hours per unit Monthly demand in units A B C $3.00 $5.00 $16.00 $1.20 $3.40 $10.00 $0.50 $1.00 $3.50 1 .2 hours 0.5 hours 5 hours 500 600 240

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