Question
Lee-Law Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling
Lee-Law Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling prices and unit costs for three product lines follow. Plain Regular Super Selling Price Direct material 00 80 110 160 12 12 Direct labor (@ $20 per hour) 30 Variable overhead Fixed overhead 16 20 20 60 60 90 06 8 12 12 16 16 6 7 8 Daily demand (units) 10 15 38 Lee-Law Company has 10 direct labor workers assigned to the department and works two shifts per day. How many units of the super product would Lee-Law Company produce to maximize profits? (round to the whole unit)
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