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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 $ 2.00 $ 3.00 3
B $ 4.50 $ 1.50 $ 3.00 3
C $ 6.00 $ 2.00 $ 5.00 5

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

Multiple Choice

  • Z = $2A + $3B + $4C.

  • Z = $5A + $4.5B + $7C.

  • Z = $4A + $4.5B + $6C.

  • Z = $1A + $1B + $1C.

  • Z = $2A + $1.5B + $2C.

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