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XYZ Company produces two products, A and B. For the coming period, 100,000 machine hours and 225,000 direct labor hours are available. Information on the two products appears below:
Product A Product B
selling price per unit ........... $5.00 $6.00
variable costs per unit .......... $2.25 $2.50
machine hours per unit ........... 1.00 2.00
direct labor hours per unit ...... 3.00 4.00
Calculate the number of units of Product A that should be produced in order to maximize net income.
Do not use a the $, decimals, or type the word units after your answer.
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