Cool Springs Inc. produces three products with the following information:

The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $22,000. The demand for each of the products is 2,500 units per month. The companys goal is to maximize its profitability. Suppose the company can rent a machine that will provide an additional 1,300 machine-hours per month. Q) What is the maximum monthly rent the company should be willing to pay for this machine (assuming theyve made optimal use of their own machine)?

A) $

Product Better $19 Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Good $17 $8 2 Best $26 $12 4 $10 3