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Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per

Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows:

Product Selling Price per Unit Variable Cost per Unit Fixed Cost per Unit DL Hours per Unit
A $ 4.00 $ 1.00 $ 2.00 2
B $ 3.50 $ 0.50 $ 2.00 2
C $ 6.00 $ 2.00 $ 3.00 3

The objective function for a linear program to maximize contribution margin from the set of three products is:

Multiple Choice

  • Z = A + B + C.

  • Z = $3A + $3B + $4C.

  • Z = A + $0.50B + $2C.

  • Z = $3A + $2.50B + $5C.

  • Z = $4A + $3.50B + $6C.

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