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Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit $ 80 $ 65
Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit $ 80 $ 65 $ 45 Variable cost per unit $ 35 $ 26 $ 20 Machine-hours per unit 2.5 3.0 1.25 The company has only 3,000 machine-hours available and unlimited demand for each of its three products. Up to how much should the company be willing to pay per hour to lease additional machine capacity?
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