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Assume a company produces and sells the following 3 products. If the company is limited to 4,000 machine hours (MH), how many units of each
Assume a company produces and sells the following 3 products. If the company is limited to 4,000 machine hours (MH), how many units of each product should it produce in order to maximize operating income?
Product | A | B | C |
Selling price per unit | $150 | $200 | $140 |
Variable costs per unit | $60 | $80 | $60 |
MH required per unit | 5 | 10 | 4 |
Maximum sales (units) | 350 | 400 | 600 |
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