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Casey Manufacturing produces three products: A, B, and C. A limitation of 195 labor-hours per week prevents Casey from meeting the sales demands for its
Casey Manufacturing produces three products: A, B, and C. A limitation of 195 labor-hours per week prevents Casey from meeting the sales demands for its products. The product information is as follows:
| A | B | C | |
Unit selling price | $90 | $120 | $200 | |
Unit variable costs | - 50 | - 32 | - 160 | |
Unit contribution margin | $40 | $ 88 | $ 40 | |
Labor-hours per unit | 4 | 2 | 1 | |
In addition, the maximum weekly demand for each product is:
Product | Demand |
A | 55 units |
B | 30 units |
C | 35 units |
Determine the weekly production schedule for products A, B, and C under a short-run profit maximizing strategy.
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