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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
Product A | Product B | Product C | |||||
Sales price | $ | 42.00 | $ | 52.00 | $ | 82.00 | |
Variable costs per unit | 19.20 | 13.25 | 35.20 | ||||
Fixed costs per unit | 4.00 | 4.00 | 4.00 | ||||
Required number of labor hours | 1.50 | 2.50 | 3.00 | ||||
Cordova currently is limited to 45,000 labor hours per month. Cordovas marketing department has determined the following demand for its products:
Product A | 16,000 | units | |
Product B | 7,000 | units | |
Product C | 5,000 | units | |
Required: Given the companys limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (
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