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How many of each product should umbrella co produce

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Reference no: EM133177544

Question - Umbrella Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:

(per unit)

A

B

C

Sales price

$3.00

$5.00

$16.00

Variable cost

$1.20

$3.40

$10.00

Fixed cost

$0.50

$1.00

$3.50

Labor hours per unit

0.75 hrs

1.25 hr

2hr

Monthly demand in units

500

600

240

The company has only 1,500 hour the direct labor hours available to commit to production of any new products.

Required - How many of each product should Umbrella Co. produce and sell to maximize its profit?

Reference no: EM133177544

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