Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours. Product A Product B Product C Product A $ 50.00 15,000 units 10,000 units 6,000 units 16.40 6.00 2.00 Product B $ 60.00 11.25 6.00 2.50 Product C $90.00 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: 24.40 6.00 4.00 Required: Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products
follows:
Sales price
Variable costs per unit
Fixed costs per unit
Required number of labor hours
15,000 units
10,000 units
6,000 units
Product A
$ 50.00
16.40
6.00
2.00
Product B
$ 60.00
11.25
6.00
2.50
Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand
for its products:
Product A
Product B
Product C
Units Produced
Product C
$ 90.00
24.40
6.00
4.00
Required:
ven the company's limit
maximize its profit.
resource nd expected demand, compute how many units of ach product Cordova should produce to
Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round
your answers to the nearest whole number.
Product
Transcribed Image Text:Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours 15,000 units 10,000 units 6,000 units Product A $ 50.00 16.40 6.00 2.00 Product B $ 60.00 11.25 6.00 2.50 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product B Product C Units Produced Product C $ 90.00 24.40 6.00 4.00 Required: ven the company's limit maximize its profit. resource nd expected demand, compute how many units of ach product Cordova should produce to Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product
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