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AV, Inc. has 126,000 direct labor hours available per year. Information related to AV's three products appears below: Product #1 Product #2 Product #3
AV, Inc. has 126,000 direct labor hours available per year. Information related to AV's three products appears below: Product #1 Product #2 Product #3 demand for next year in units 63,000 55,000 78,000 selling price per unit $24 $46 $28 variable costs per unit $15 $34 $21 direct labor hours needed to produce one unit 1.25 1.60 0.80 Calculate the number of units of Product #2 that AV, Inc. should produce next year in order to maximize its net income.
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