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XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limitedto 200,000 machine hours per year. The following information is available forplanning
XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limitedto 200,000 machine hours per year. The following information is available forplanning purposes:
Product A Product B Product C demand for next year ............. 100,000 units 200,000 units 150,000 units selling price per unit ........... $18 $28 $23 variable costs per unit .......... $15 $20 $21
It is known that it takes 0.50 machine hours to produce one unit of Product A;0.70 machine hours to produce one unit of Product B; and 0.40 machine hours toproduce one unit of Product C.
Calculate the number of units of Product C that XYZ Company should produce inorder to maximize its net income. Do not use decimals, the $ or type the wordunits after your answer.
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