Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product AProduct BProduct CSales price$47.00$57.00$87.00 Variable costs per unit 22.70 12.00 38.70 Fixed costs per unit 9.00 9.00 9.00 Required number of labor hours 1.50 2.50 3.00 Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A14,000unitsProduct B9,000unitsProduct C10,000units Required:Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.) ProductUnits Produced

The contribution of a product is calculated by deducting the variable cost from the sales price of…

Answered: Cordova manufactures three types of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:

	Product A	Product B	Product C
Sales price	$	47.00	$	57.00	$	87.00
Variable costs per unit		22.70		12.00		38.70
Fixed costs per unit		9.00		9.00		9.00
Required number of labor hours		1.50		2.50		3.00

Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products:


Product A	14,000	units
Product B	9,000	units
Product C	10,000	units

Required:
Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.)

Product	Units Produced

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