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Castle Corp. produces three products, and is currently facing a labor shortage. The selling price, costs, and labor requirements of the three products are as
Castle Corp. produces three products, and is currently facing a labor shortage. The selling price, costs, and labor requirements of the three products are as follows:
Product A | Product B | Product C | ||||
Selling price | $ | 74.00 | $ | 64.00 | $ | 60.00 |
Variable cost per unit | $ | 59.00 | $ | 55.00 | $ | 54.00 |
Direct labor hours per unit | 1.5 | 3 | 2 | |||
Castle has unlimited demand for all its products. Which product/s should Castle Corp produce to maximize profit during the labor shortage?
Product A only
Product B only
Products A and B
Products A, B, and C
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