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Umbrella Co . is considering the introduction of three new products. Per unit sales and cost information are as follows: A B C Sales price

Umbrella Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:
A
B
C
Sales price
$3.00
$5.00
$16.00
Variable costs
$1.20
$3.40
$10.00
Fixed costs
$0.50
$1.00
$3.50
Labor hours per unit
0.75 hours
1.25 hours
2 hours
Monthly demand in units
800
650
250
The company has only 1,500 direct labor hours available to commit to production of any new products.
Required
How many of each product should Umbrella Co. produce and sell to maximize its profit?

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