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# Optimal Co. manufactures four products. Direct materials and direct labor are available in sufficient quantities, but machine capacity is limited to 3,000 hours. Cost

## Optimal Co. manufactures four products. Direct materials and direct labor are available in sufficient quantities, but machine capacity is limited to 3,000 hours. Cost and revenue data for the four products are given below: Selling price per unit Variable cost per unit Units produced per machine hour Prod AProd BProd CProd D $36 $42 $46 $56 $19 $26 $25 537 3 Assuming that Optimal wants to maximize its profits, what will be the Optimal operating income if fixed costs are $100,000 and demand is limited to 6,000 units of Prod A, 5,000 units of Prod B, 4,000 units of Prod C and 3,000 units of Prod D (you must show your work on how you came to your conclusion in order to receive credit) ?

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Certainlylets analyze the image and determine the optimal operating income for Optimal Co Understanding the Problem Optimal Comanufactures four products ABCand D with limited machine capacity of 3000 ...### Get Instant Access to Expert-Tailored Solutions

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