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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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