Pinter Corporation produces three products and is currently short on machine hours since one of its two machines is down; only 880 machine hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Product A $ 9.00 Product B Product C $ 7.00 $ 9.00 Variable cost per unit Machine hours per unit $ 7.50 0.75 $ 6.00 0.25 $ 6.00 1.00 Demand (units) 700 800 610 How many of each product should be produced while the machine is down to maximize profit?
Pinter Corporation produces three products and is currently short on machine hours since one of its two machines is down; only 880 machine hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Product A $ 9.00 Product B Product C $ 7.00 $ 9.00 Variable cost per unit Machine hours per unit $ 7.50 0.75 $ 6.00 0.25 $ 6.00 1.00 Demand (units) 700 800 610 How many of each product should be produced while the machine is down to maximize profit?
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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