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Hammer Ltd. manufactures three different product lines: Model A, Model B and Model C. The following table contains per-unit data and annual demand for the

Hammer Ltd. manufactures three different product lines: Model A, Model B and Model C. The following table contains per-unit data and annual demand for the models:

Model A Model B Model C Minimum demand 1,000 1,000 1,200 Maximum demand 4,000 5,000 6,000 Selling price $100 $85 $130 Direct materials 20 14 26 Direct labour ($12 per hour) 12 12 24 Variable support costs ($3 per machine-hour) 9 6 12 Fixed support costs 30 30 40

If there are 30,000 machine-hours available per year, how many units of each model should Hammer produce to maximize profits? a) 4,000 of A, 5,000 of B and 2,000 of C b) 1,333 of A, 1,000 of B and 6,000 of C c) 2,000 of A, 0 of B and 6,000 of C d) 0 of A, 3,000 of B and 6,000 of C

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