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Must Show Formulas Decision Making #2 ABC Company produces three products: A, B, and C. The company only has Product information is as follows: 300

Must Show Formulas

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Decision Making #2 ABC Company produces three products: A, B, and C. The company only has Product information is as follows: 300 labor hours per week to produce these 3 products 75 Unit selling price Unit variable costs Unit contribution margin 140 100 50 240 180 60 40 25 Labor hours per unit Maximum demand in units per week 15 20 30 Required: What is the optimal product mix(how many A, B, and C should be produced) the company would produce for a week based on only having 300 labor hours and the demand for each product? Explain your answer and show computations. Solution

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