A company produces and sells three products.

	Product 1	Product 2	Product 3
Selling price per unit	$70	$100	$200
Variable cost per unit	$20	$43	$120
Fixed cost per unit	$10	$14	$25
Machine hours per unit	5	5	20

This company has enough machine hours to make as many units as it can sell of its two most profitable products. If the company has the opportunity to rent more machine hours, what is the most it would be willing to pay per machine hour? (Round to the nearest dollar and cents.)

Answer rating: 100% (QA)

To determine the maximum amount the company would be willing to pay per machine hour we need to calc... View the full answer