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The center company produces three products with following costs and selling prices: product name round square triangle Selling price per unit $ 24 $ 26

The center company produces three products with following costs and selling prices:

product name round square triangle
Selling price per unit $ 24 $ 26 $ 20
variable cost cost per unit $ 10 $ 10 $ 12
machine hour per unit 2 4 4

Center has a limit of 14,600 machine hours available per month. The company has a monthly fixed cost of $ 30,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability.

Suppose the company can rent a machine that will provide an additional 800 machine hours per month. what is the maximum monthly rent the company would be willing to pay for this machine?

a) $ 2,000

b) $ 4,200

c) $ 2,400

d) $ 1,200

e) $ 2,800

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