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Brick Company produces three products with the following information: Product Good $17 $8 Better Selling price per unit Variable cost per unit Best $26 $12
Brick Company produces three products with the following information: Product Good $17 $8 Better Selling price per unit Variable cost per unit Best $26 $12 $19 $10 Machine-hours per unit (MH/unit) 2 3 4 The Brick company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $39,000.
Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Good $17 $8 2 Product Better $19 $10 3 Best $26 $12 4 The demand for each of the products is 2,500 units per month.
The company's goal is to maximize its profitability.
Suppose the Brick company can rent a machine that will provide an additional 1,240 machine-hours per month.
Q. What is the maximum monthly rent the Brick company should be willing to pay for this machine (assuming they've made optimal use of their own machine)?
A. $
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