Blossom Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B Sales $ 3.00 $ 5.00 $ 12.00 Variable costs $ 1.20 $ 3.40 2$ 6.00 Fixed costs $ 0.50 $ 1.00 $ 3.50 Labor hours per unit 0.75 hours 1.25 hours 2.00 hours Monthly demand in units 700 650 250 The company has only 1,500 direct labor hours available to commit to production of any new products. How many of each product should Blossom Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to O decimal places, eg. 5,275.) A
Blossom Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A B Sales $ 3.00 $ 5.00 $ 12.00 Variable costs $ 1.20 $ 3.40 2$ 6.00 Fixed costs $ 0.50 $ 1.00 $ 3.50 Labor hours per unit 0.75 hours 1.25 hours 2.00 hours Monthly demand in units 700 650 250 The company has only 1,500 direct labor hours available to commit to production of any new products. How many of each product should Blossom Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to O decimal places, eg. 5,275.) A
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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