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Castor Corp. produces three products, and is currently facing a labor shortage - only 12,600 hours are available this month. The selling price, costs, labor

Castor Corp. produces three products, and is currently facing a labor shortage - only 12,600 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 $ 210.00 $ 190.00 $ 200.00
Variable cost per unit $ 147.00 $ 76.00 $ 140.00
Direct labor hours per unit 1.50 3.00 2.00
Demand 4,200 8,400 2,100

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

  • 8,400 of Product A, 0 of Product B, and 0 of Product C.

  • 0 of Product A, 4,200 of Product B, and 0 of Product C.

  • 4,200 of Product A, 2,100 of Product B, and 0 of Product C.

  • 4,200 of Product A, 8,400 of Product B, and 2,100 of Product C.

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