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Pine Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down. The selling price, costs,

Pine Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down. The selling price, costs, and machine time requirements of the three products are as follows:

Product A Product B Product C
Selling price $

7.00

$

4.50

$

2.25

Variable cost per unit $

6.00

$

3.00

$

2.00

Machine hours per unit

0.50

0.25

0.25

Pine has unlimited demand for all its products. Which product/s should Pine Corp. produce to maximize profit while the machine is down?

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