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Passat Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down only 1,480 hours are
Passat Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down only 1,480 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:
Passat Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down - only 1,480 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows: Product A Product B Product C Selling price $16.00 $14.00 $16.00 Variable cost per unit $11.20 $ 8.40 $ 6.40 Machine hours per unit 0.25 Demand 840 0.75 630 1 430 a. In what order should Passat prioritize production of the products? O A,B,C OB.C.A O C.B.A .. b. How many of each product should be sold while the machine is down to maximize profit? (Round your answers to the nearest whole number.) Number of Products Product A Product B Product C c. What is the total contribution margin if Passat prioritizes production according to its limited resources? (Do not round contribution margin. Round number of products to the nearest number.) Total Contribution MarginStep by Step Solution
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