Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 42.00 Product B $ 52.00 Product C $ 82.00 13.25 35.20 4.00 2.50 4.00 3.00 19.20 4.00 1.50 Cordova currently is limited to 45,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A 16,000 units Product B Product C Required: 7,000 units 5,000 units Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: 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.
Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 42.00 Product B $ 52.00 Product C $ 82.00 13.25 35.20 4.00 2.50 4.00 3.00 19.20 4.00 1.50 Cordova currently is limited to 45,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A 16,000 units Product B Product C Required: 7,000 units 5,000 units Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: 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.
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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