XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 200,000...

Transcribed Image Text:

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: demand for next year selling price per unit variable costs per unit Product A 100,000 units $18 Product B 200,000 units $28 Product C 150,000 units $24 $16 $20 $21 It takes 0.40 machine hours to produce one unit of Product A; 0.80 machine hours to produce one unit of Product B; and 0.50 machine hours to produce one unit of Product C. Calculate the total number of units of Product C that XYZ Company should produce in order to maximize its net income. 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: demand for next year selling price per unit variable costs per unit Product A 100,000 units $18 Product B 200,000 units $28 Product C 150,000 units $24 $16 $20 $21 It takes 0.40 machine hours to produce one unit of Product A; 0.80 machine hours to produce one unit of Product B; and 0.50 machine hours to produce one unit of Product C. Calculate the total number of units of Product C that XYZ Company should produce in order to maximize its net income.