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Rosies Company has three products, P1, P2, and P3. The maximum Rosies can sell is 70,000 units of P1, 39,000 units of P2, and 27,000

Rosies Company has three products, P1, P2, and P3. The maximum Rosies can sell is 70,000 units of P1, 39,000 units of P2, and 27,000 units of P3. Rosies has limited production capacity of 24,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosies Company?

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  • 102,000 P1, 39,000 P2, 27,000 P3.

  • 24,300 P1, 39,000 P2, 102,000 P3.

  • 102,000 P1, 35,000 P2, 102,000 P3.

  • 27,300 P1, 35,000 P2, 27,000 P3.

  • 24,300 P1, 40,000 P2, 24,300 P3.

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