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Company manufacturers and sells three products A,B & C. The unit cost and revenue structure for each product and its maximum forecast demand for the coming period are as follows:-
Product
A
B
C
Selling price per unit (Shs.)
140
100
120
Variable cost per unit (Shs.)
70
60
80
Maximum demand (units)
500
300
Machine hours required per unit
10
4
5
The company has a maximum of 6000 machine hours available during the coming period
Required
Calculate the number of units of each product A, B, and C which should be produced and sold in order to maximize profit
Calculate the maximum profit earned from the decision strategy per 1
Suggest other factors which management may wish to consider which could result in a change in their decision
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