Question
Crane Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B C Sales $ 3.00
Crane Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B C Sales $ 3.00 $ 6.00 $ 16.00 Variable costs $ 1.20 $ 3.40 $ 10.00 Fixed costs $ 0.50 $ 1.00 $ 3.50 Labor hours per unit 0.75 hours 1.25 hours 2.00 hours Monthly demand in units 800 650 250 The company has only 1,600 direct labor hours available to commit to production of any new products. How many of each product should Crane Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
View Policies Current Attempt in Progress Crane Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B Sales $ 16.00 Variable costs $ 3.00 $ 1.20 $ 0.50 $ 10.00 Fixed costs $ 6.00 $ 3.40 $ 1.00 1.25 hours 650 $ 3.50 0.75 hours 2.00 hours Labor hours per unit Monthly demand in units 800 250 The company has only 1,600 direct labor hours available to commit to production of any new products. How many of each product should Crane Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) A BStep by Step Solution
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