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Company produces three products with the following information: Selling price per unit Variable cost per unit Product Small Medium Large $17 $19 $26 $8
Company produces three products with the following information: Selling price per unit Variable cost per unit Product Small Medium Large $17 $19 $26 $8 2 $10 3 $12 4 Machine-hours per unit (MH/unit) Company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $45,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the company can rent a machine that will provide an additional 1,390 machine-hours per month, What is the maximum monthly rent the optimal use of their own machine)? A: $ Icompany should be willing to pay for this machine (assuming they've made
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