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Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Good $17 $8 2 Product
Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Good $17 $8 2 Product Better $19 $10 3 Best $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $33,000. 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 1,090 machine-hours per month. Q) What is the maximum monthly rent the company should be willing to pay for this machine (assuming they've made optimal use of their own machine)? A) $
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