Pharoah Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: Sales Variable costs Fixed costs Labor hours per unit Monthly demand in units A B A C $ 3.00 $ 1.20 $ 0.50 0.75 hours 800 B $6.00 $ 3.40 $ 1.00 1.25 hours 650 C 16.00 $10.00 $ 3.50 The company has only 1,700 direct labor hours available to commit to production of any new products. How many of each product should Pharoah Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.) 2.00 hours 250

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Pharoah Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:
Sales
Variable costs
Fixed costs
Labor hours per unit
Monthly demand in units
A
B
A
C
$ 3.00
$1.20
$ 0.50
0.75 hours
800
B
$6.00
$ 3.40
$1.00
1.25 hours
650
C
16.00
$10.00
$
3.50
The company has only 1,700 direct labor hours available to commit to production of any new products.
How many of each product should Pharoah Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places,
eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
2.00 hours
250
Transcribed Image Text:Pharoah Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: Sales Variable costs Fixed costs Labor hours per unit Monthly demand in units A B A C $ 3.00 $1.20 $ 0.50 0.75 hours 800 B $6.00 $ 3.40 $1.00 1.25 hours 650 C 16.00 $10.00 $ 3.50 The company has only 1,700 direct labor hours available to commit to production of any new products. How many of each product should Pharoah Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.) 2.00 hours 250
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