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Question 2 XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 175,000 machine hours each year. The following
Question 2 XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 175,000 machine hours each year. The following information is available for the three products: demand for next year selling price per unit variable costs per unit machine hours needed per unit Product A 40,000 units $42 $30 1.40 Product B demand for next year 74,000 units selling price per unit $34 variable costs per unit $23 machine hours needed per unit 1.25 demand for next year selling price per unit variable costs per unit machine hours needed per unit Product C 69,000 units $31 $17 1.50 Calculate the number of units of Product B that XYZ Company should produce in order to maximize its net income.
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