XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 48,000 machine hours per year. The following information is available for planning purposes: Product A Product B Product C demand for next year ............. 21,000 units 28,000 units 35,000 units selling price per unit ........... $80 $120 $160 direct material cost per unit .... $24 $ 22 $ 36 direct labor cost per unit ....... $18 $ 50 $ 62 variable overhead cost per unit .. $22 $ 25 $ 33 It takes 0.80 machine hours to produce one unit of Product A; 1.20 machine hours to produce one unit of Product B; and 1.60 machine hours to

XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 48,000 machine hours per year. The following information is available for planning purposes: Product A Product B Product C demand for next year ............. 21,000 units 28,000 units 35,000 units selling price per unit ........... $80 $120 $160 direct material cost per unit .... $24 $ 22 $ 36 direct labor cost per unit ....... $18 $ 50 $ 62 variable overhead cost per unit .. $22 $ 25 $ 33 It takes 0.80 machine hours to produce one unit of Product A; 1.20 machine hours to produce one unit of Product B; and 1.60 machine hours to produce one unit of Product C. Assume that XYZ Company can work its plant overtime for 8,000 additional machine hours. Overtime premiums will add 50% to direct labor costs. Calculate the total number of units of Product C that XYZ Company should produce in order to maximize its net income.

produce one unit of Product C. Assume that XYZ Company can work its plant overtime for 8,000 additional machine hours. Overtime premiums will add 50% to direct labor costs. Calculate the total number of units of Product C that XYZ Company should produce in order to maximize its net income.