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Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product
Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows:
Product A | Product B | Product C | |
---|---|---|---|
Sales price | $ 35 | $ 45 | $ 75 |
Variable costs per unit | 17 | 21 | 32 |
Fixed costs per unit | 5 | 5 | 5 |
Required number of labor hours | 1.25 | 2.00 | 2.50 |
Cordova currently is limited to 40,000 labor hours per month. Cordovas marketing department has determined the following demand for its products:
Product A | 18,000 | units |
---|---|---|
Product B | 12,000 | units |
Product C | 4,000 | units |
Given the companys limited resource and expected demand, compute how many units of each product (A, B, and C) Cordova should produce to maximize its profit.
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