Question
Pinter Corp. produces three products, and is currently short on machine hours since one of its two machines is down - only 1,660 hours are
Pinter Corp. produces three products, and is currently short on machine hours since one of its two machines is down - only 1,660 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 | $ | 18.00 | $ | 16.00 | $ | 18.00 | ||
Variable cost per unit | $ | 12.60 | $ | 9.60 | $ | 7.20 | ||
Machine hours per unit | 0.75 | 0.25 | 1.00 | |||||
Demand | 1,860 | 920 | 470 | |||||
How many of each product should be sold while the machine is down to maximize profit?
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460 of Product A, 0 of Product B, and 470 of Product C.
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0 of Product A, 6,640 of Product B, and 0 of Product C.
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690 of Product A, 920 of Product B, and 470 of Product C.
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1,280 of Product A, 920 of Product B, and 470 of Product C.
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