Question
Castor Corp. produces three products, and is currently facing a labor shortage - only 14,400 hours are available this month. The selling price, costs, labor
Castor Corp. produces three products, and is currently facing a labor shortage - only 14,400 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 | $ | 240.00 | $ | 220.00 | $ | 230.00 |
| Variable cost per unit | $ | 168.00 | $ | 88.00 | $ | 161.00 |
| Direct labor hours per unit | 1.50 | 3.00 | 2.00 | |||
| Demand | 4,800 | 9,600 | 2,400 | |||
How many of each product should be sold during the labor shortage to maximize profit?
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0 of Product A, 4,800 of Product B, and 0 of Product C.
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4,800 of Product A, 9,600 of Product B, and 2,400 of Product C.
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9,600 of Product A, 0 of Product B, and 0 of Product C.
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4,800 of Product A, 2,400 of Product B, and 0 of Product C.
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Complete Handbook Of Operational And Management Auditing
Authors: William T. Thornhill
1st Edition
0131611410, 978-0131611412
