Question
Castor Corp. produces three products, and is currently facing a labor shortage - only 8,400 hours are available this month. The selling price, costs, labor
Castor Corp. produces three products, and is currently facing a labor shortage - only 8,400 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 | $ | 140.00 | $ | 120.00 | $ | 130.00 |
Variable cost per unit | $ | 98.00 | $ | 48.00 | $ | 91.00 |
Direct labor hours per unit | 1.50 | 3.00 | 2.00 | |||
Demand | 2,800 | 5,600 | 1,400 | |||
How many of each product should be sold during the labor shortage to maximize profit?
Multiple Choice
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2,800 of Product A, 1,400 of Product B, and 0 of Product C.
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2,800 of Product A, 5,600 of Product B, and 1,400 of Product C.
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0 of Product A, 2,800 of Product B, and 0 of Product C.
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5,600 of Product A, 0 of Product B, and 0 of Product C.
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