Produced in order to maximize net income

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Reference no: EM131224113

XYZ Company produces two products, A and B. For the coming period, 140,000 machine hours and 200,000 direct labor hours are available. Information on the two products appears below:

Product A Product B

selling price per unit ........... $6.00 $8.00

variable costs per unit .......... $4.00 $5.00

machine hours per unit ........... 2.00 5.00

direct labor hours per unit ...... 6.00 4.00

Calculate the number of units of Product B that should be produced in order to maximize net income.

Reference no: EM131224113

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