Carla Vista Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A $ 3.00 $ 1.20 $ 0.50 Sales "Variable costs Fixed costs Labor hours per unit Monthly demand in units A 1.20 hours 500 B B $ 6.00 $ 3.40 $ 1.00 0.50 hours 620 с $ 13.00 $ 11.00 $ 3.50 5 hours The company has only 1,800 direct labor hours available to commit to production of any new products. How many of each product should Carla Vista Co. produce and sell to maximize its profit? (Round answers to 0 decimal places, e.g. 5,275.) 240
Carla Vista Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: A $ 3.00 $ 1.20 $ 0.50 Sales "Variable costs Fixed costs Labor hours per unit Monthly demand in units A 1.20 hours 500 B B $ 6.00 $ 3.40 $ 1.00 0.50 hours 620 с $ 13.00 $ 11.00 $ 3.50 5 hours The company has only 1,800 direct labor hours available to commit to production of any new products. How many of each product should Carla Vista Co. produce and sell to maximize its profit? (Round answers to 0 decimal places, e.g. 5,275.) 240
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Carla Vista Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:
Sales
Variable costs
Fixed costs
Labor hours per unit
Monthly demand in units
A
B
C
с
A
$ 3.00
$ 1.20
000
$0.50
1.20 hours
500
B
$ 6.00
$ 3.40
$ 1.00
0.50 hours
620
The company has only 1,800 direct labor hours available to commit to production of any new products.
How many of each product should Carla Vista Co. produce and sell to maximize its profit? (Round answers to 0 decimal places, e.g. 5,275.)
с
$ 13.00
$11.00
$3.50
5 hours
240
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