Question
Joel Company produces and sells two products, A and U. Revenue and cost information for the two products from last month appear below: selling
Joel Company produces and sells two products, A and U. Revenue and cost information for the two products from last month appear below: selling price per unit ... variable costs per unit Product A $46 $28 Product U $90 $83 Each month Joel Company has 72,000 direct labor hours available and 81,000 machine hours available. Product A requires 8 direct labor hours for each unit and 2 machine hours for each unit. Product U requires 3 direct labor hours for each unit and 6 machine hours for each unit. Calculate the number of units of Product A that should be produced in order to maximize net income.
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