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Castor Corp. produces three products, and is currently facing a labor shortage - only 10,200 hours are available this month. The selling price, costs, labor

Castor Corp. produces three products, and is currently facing a labor shortage - only 10,200 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:

Product A Product B Product C
Selling price $ 170.00 $ 150.00 $ 160.00
Variable cost per unit $ 119.00 $ 60.00 $ 112.00
Direct labor hours per unit 1.50 3.00 2.00
Demand 3,400 6,800 1,700

How many of each product should be sold during the labor shortage to maximize profit?

Multiple Choice

  • 0 of Product A, 3,400 of Product B, and 0 of Product C.

  • 3,400 of Product A, 1,700 of Product B, and 0 of Product C.

  • 6,800 of Product A, 0 of Product B, and 0 of Product C.

  • 3,400 of Product A, 6,800 of Product B, and 1,700 of Product C.

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