med Products nformaton products cts fol lows: manufactures three 8 window a Prod
ID: 2516425 • Letter: M
Question
med Products nformaton products cts fol lows: manufactures three 8 window a Product C S85.00 Product A Product B 355.00 Salos prico Varable costs por unit Required number af labor hours Cordova currently is limited to 55,500 labor hours per month. Cordova's marketing department has deterrmined the following demand for its products: decermined Procuet B Produd C 14,000 unis 9,000 uns 5,000 un Required: Given the company's Iimted resource and expecled demand, compute how many units of each product Cordova should produce to maximize its profit (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answer to the nearest whole number.)Explanation / Answer
Product A Product B Product C Sales price 45 55 85 Variable cost 21.3 12.5 37.3 Contribution margin per unit 23.7 42.5 47.7 Required number of labor hours 1.5 2.5 3 Contribution margin per labor hour 15.8 17 15.9 Preference in production 3 1 2 Hours required to meet demand 21000 22500 15000 Hours allocated 18000 22500 15000 Product Units produced Product B 9000 Product C 5000 Product A 12000
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