Carla Vista Co. is considering the introduction of three new products. Per unit sales and cost information
Question:
Carla Vista Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:
|
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| A |
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| B |
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| C |
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Sales |
| $ | 3.00 |
|
| $ | 6.00 |
|
| $ | 16.00 |
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Variable costs |
| $ | 1.20 |
|
| $ | 3.40 |
|
| $ | 11.00 |
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Fixed costs |
| $ | 0.50 |
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| $ | 1.00 |
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| $ | 3.50 |
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Labor hours per unit |
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| 0.75 | hours |
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| 1.25 | hours |
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| 2.00 | hours |
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Monthly demand in units |
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| 700 |
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| 650 |
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| 250 |
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The company has only 1,500 direct labor hours available to commit to production of any new products. How many of each product should Carla Vista Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
A |
| enter a number of units rounded to 0 decimal places |
B |
| enter a number of units rounded to 0 decimal places |
C |
| enter a number of units rounded to 0 decimal places |