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

			A				B				C
Sales		$	3			$	5			$	13
Variable costs		$	1.2			$	3.4			$	11
Fixed costs		$	0.5			$	1			$	3.5
Labor hours per unit			1.2	hours			0.5	hours			5	hours
Monthly demand in units			550				600				250

The company has only 1,800 direct labor hours available to commit to production of any new products.

How many of each product should Umbrella Co. produce and sell to maximize its profit? (Round answers to 0 decimal places, e.g. 5,275.)

Answer rating: 100% (QA)

Solution Product Units to be Produced A 550 B 600 C 1... View the full answer