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Decision Making #2 ABC Company produces three products: A, B, and C. The company only has Product information is as follows: Unit selling price
Decision Making #2 ABC Company produces three products: A, B, and C. The company only has Product information is as follows: Unit selling price Unit variable costs Unit contribution margin Labor hours per unit Maximum demand in units per week Required: 300 labor hours per week to produce these 3 products A B C 140 75 240 100 50 180 40 25 60 5 4 15 20 6 30 What is the optimal product mix(how many A, B, and C should be produced) the company would produce for a week based on only having 300 labor hours and the demand for each product? Explain your answer and show computations. Solution:
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