Question
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 | $ 37.00 | $ 47.00 | $ 77.00 |
Variable costs per unit | 19.25 | 21.00 | 39.25 |
Fixed costs per unit | 5.00 | 5.00 | 5.00 |
Required number of labor hours | 1.25 | 2.00 | 2.50 |
Cordova currently is limited to 39,750 labor hours per month. Cordovas marketing department has determined the following demand for its products:
Product A | 11,000 | units |
---|---|---|
Product B | 12,000 | units |
Product C | 4,000 | units |
Required:
Given the companys limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit.
Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started