Umbrella Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:

The company has only 1,500 direct labor hours available to commit to production of any new products.

Required

How many of each product should Umbrella Co. produce and sell to maximize its profit?

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A B Sales price $3.00 $5.00 $16.00 Variable costs $1.20 $3.40 $10.00 Fixed costs $0.50 $1.00 $ 3.50 Labor hours per unit Monthly demand in units 0.75 hours 1.25 hours 2 hours 800 650 250