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Use of Limited Resources Northern Production Company has 200 labor-hours available. There is no limit on machine-hours. Northern can sell all of Y it wants,
Use of Limited Resources Northern Production Company has 200 labor-hours available. There is no limit on machine-hours. Northern can sell all of Y it wants, but it can only sell 45 units and 20 units of X and Z, respectively. Product X Product Y Product Z Contribution margin per unit $30 $20 $24 Labor-hours per unit 4 5 4 Required: To maximize profits, how many units of each product should Northern produce?
| Product X | Product Y | Product Z |
Contribution margin per unit | $30 | $20 | $24 |
Labor-hours per unit | 4 | 5 | 4 |
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