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XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 200,000 machine hours per year. The following information is available
XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 200,000 machine hours per year. The following information is available for planning purposes: Product A Product B Product C demand for next year in units .... 100,000 200,000 150,000 selling price per unit ........... $18 $28 $24 variable costs per unit .......... $15 $20 $22 It is known that it takes 0.40 machine hours to produce one unit of Product A; 0.70 machine hours to produce one unit of Product B; and 0.50 machine hours to produce one unit of Product C. Calculate the number of units of Product C that XYZ Company should produce in order to maximize its net income.
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