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Castor Corp. produces three products, and is currently facing a labor shortage - only 3,600 hours are available this month. The selling price, costs, labor

Castor Corp. produces three products, and is currently facing a labor shortage - only 3,600 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 $ 60.00 $ 40.00 $ 50.00
Variable cost per unit $ 42.00 $ 16.00 $ 35.00
Direct labor hours per unit 1.50 3.00 2.00
Demand 1,200 2,400 600

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

Multiple Choice

  • 1,200 of Product A, 600 of Product B, and 0 of Product C.

  • 0 of Product A, 1,200 of Product B, and 0 of Product C.

  • 1,200 of Product A, 2,400 of Product B, and 600 of Product C.

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

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