A company manufactures Products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for Departments I, II, and III are 900, 1020, and 780, respectively. The time requirements (in hours per unit) and the profit per unit for each product are as follows. Product A Product B Product C Dept. I Dept. II Dept. II 2 1 2 3 1 2 2 2 1 Profit $18 $12 $15 If management decides that the number of units of Product B manufactured must equal or exceed the number of units of products A and C manufactured, how many units of each product should the company produce to maximize its profit? product A product B product C 0 320 X 320 X What is the maximum profit (in dollars)? $ 8640 x

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A company manufactures Products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for Departments I, II,
and III are 900, 1020, and 780, respectively. The time requirements (in hours per unit) and the profit per unit for each product are as follows.
Product
A
Product
B
Product
C
Dept. I
Dept. II
Dept. II
2
1
2
3
1
2
2
2
1
Profit
$18
$12
$15
If management decides that the number of units of Product B manufactured must equal or exceed the number of units of products A and C manufactured, how many units of
each product should the company produce to maximize its profit?
product A
product B
product C
0
320
X
320
X
What is the maximum profit (in dollars)?
$ 8640
x
Transcribed Image Text:A company manufactures Products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for Departments I, II, and III are 900, 1020, and 780, respectively. The time requirements (in hours per unit) and the profit per unit for each product are as follows. Product A Product B Product C Dept. I Dept. II Dept. II 2 1 2 3 1 2 2 2 1 Profit $18 $12 $15 If management decides that the number of units of Product B manufactured must equal or exceed the number of units of products A and C manufactured, how many units of each product should the company produce to maximize its profit? product A product B product C 0 320 X 320 X What is the maximum profit (in dollars)? $ 8640 x
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