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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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.
Product
C
B
A
Units Produced
Transcribed Image Text: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. Product C B A Units Produced
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