Question
Stanley Manufacturing produces three products: A, B, and C. A limitation of 195 labor-hours per week prevents Stanley from meeting the sales demands for its
Stanley Manufacturing produces three products: A, B, and C. A limitation of 195 labor-hours per week prevents Stanley from meeting the sales demands for its products. The product information is as follows: A B C Unit selling price $90 $120 $200 Unit variable costs - 50 - 32 - 160 Unit contribution margin $ 40 $88 $
Labor-hours per unit 4 2 1 In addition, the maximum weekly demand for each product is: Product Demand A 55 units B 30 units C 35 units Determine the weekly production schedule for products A, B, and C under a short-run profit maximizing strategy.
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