Question
Sandhill Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B C SALES 3.00 6.00
Sandhill Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:
A B C
SALES 3.00 6.00 13.00
VARIABLE COST 1.20 3.40 8.00
FIXED COST 0.50 1.00 3.50
LABOR HOURS PER UNIT 0.75 HRS 1.25HRS 2.00 HRS
MONTHLY DEMAND IN UNITS 700 650 250
The company has only 1,600 direct labor hours available to commit to production of any new products.
How many of each product should Sandhill Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
A
B
C
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