Question
IvanhoeCo. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B C Sales$3.00$5.00$14.00Variable costs$1.20$3.40$6.00Fixed costs$0.50$1.00$3.50Labor hours
IvanhoeCo. is considering the introduction of three new products. Per unit sales and cost information are as follows:
A
B
C
Sales$3.00$5.00$14.00Variable costs$1.20$3.40$6.00Fixed costs$0.50$1.00$3.50Labor hours per unit0.75hours1.25hours2.00hoursMonthly demand in units800650250
The company has only1,700direct labor hours available to commit to production of any new products.
How many of each product shouldIvanhoeCo. 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.)
Aenter a number of units rounded to 0 decimal places
Benter a number of units rounded to 0 decimal places
Center a number of units rounded to 0 decimal places
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