Cordova manufactures three types of stained glass window, cleverly named Product
ID: 2517495 • Letter: C
Question
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products:
Product A14,000unitsProduct B9,000unitsProduct C10,000units
Required:
Given the company’s limited resource and expected 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.)
Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products:
Product A14,000unitsProduct B9,000unitsProduct C10,000units
Required:
Given the company’s limited resource and expected 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
Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit
Product B = 9000*2.5 = 22500 hour
Product A = 14000*1.5 =21000 Hour
Product C = (58500-22500-21000)/3 = 5000 units
Product A Product B Product C Sale price per unit 47 57 87 Variable cost per unit 22.70 12 38.70 Contribution margin per unit 24.30 45 48.30 Labour hour per unit 1.50 2.50 3.00 Contribution margin per hour 16.2 18 16.10 Rank 2 1 3Related Questions
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