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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?

  • 0 of Product A, 4,800 of Product B, and 0 of Product C.

  • 4,800 of Product A, 9,600 of Product B, and 2,400 of Product C.

  • 9,600 of Product A, 0 of Product B, and 0 of Product C.

  • 4,800 of Product A, 2,400 of Product B, and 0 of Product C.

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