Winika Company produces three products with the following information:

	Product
	Good	Better	Best
Selling price per unit	$17	$19	$26
Variable cost per unit	$8	$10	$12
Machine-hours per unit (MH/unit)	2	3	4

The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $11,000. The demand for each of the products is 2,500 units per month.

The companys goal is to maximize its profitability.

Suppose the company can rent a machine that will provide an additional 1,240 machine-hours per month.

Q. What is the maximum monthly rent the company should be willing to pay for this machine (assuming theyve made optimal use of their own machine)?

A. $