Question: Can someone please explain how we got 3 for product B in the product mix decision in part 2? I don't understand the solution for

Can someone please explain how we got 3 for product B in the product mix decision in part 2?

I don't understand the solution for part 2 if someone can explain?

Thanks very much

Can someone please explain how we got 3 for product B in

Company produces and sells three products (A, B, C). The following data relate to the three products. Management considers labor to be a fixed cost. Demand in units Selling price per unit Raw materials cost/unit Labor time in minutes/unit A 120 $ 100 $ 50 12 A A B 110 $ 120 $ 60 17 C 100 $ 105 $ 60 7 Required: 1. Calculate the contribution per labor minute for each product. 2. Determine the best product mix. Assume there are five employees, and given time for breaks, training, and regular meetings, there are a total of 2,200 minutes available per day. 2. Solution part 2: Product mix decision All of C: 100 x 7 min = 700 min All of A: 120 x 12 min = 1,440 min Surplus for B = 60 min 60/17 = 3.53 units > Summary: A B Best Product mix 120 3 100

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