Question
Sunland Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: Sales Variable costs Fixed costs Labor
Sunland Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: Sales Variable costs Fixed costs Labor hours per unit Monthly demand in units A B $ 3.00 $ 1.20 $0.50 C 0.75 hours 800 UN B $5.00 $ 3.40 $ 1.00 1.25 hours 650 The company has only 1,800 direct labor hours available to commit to production of any new products. How many of each product should Sunland 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.) $ 20.00 $ 11.00 $ 3.50 2.00 hours 250
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