E7-16 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] 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 $ 51.00 17.00 7.00 2.00 Product B $ 61.00 Product C $ 91.00 11.00 25.00 7.00 2.50 7.00 4.00 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 Required: 16,000 units 10,000 units 6,000 units 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. Product Units Produced

Survey of Accounting (Accounting I)
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Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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E7-16 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7]
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
$ 51.00
17.00
7.00
2.00
Product B
$ 61.00
Product C
$ 91.00
11.00
25.00
7.00
2.50
7.00
4.00
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
Required:
16,000 units
10,000 units
6,000 units
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.
Product
Units Produced
Transcribed Image Text:E7-16 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] 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 $ 51.00 17.00 7.00 2.00 Product B $ 61.00 Product C $ 91.00 11.00 25.00 7.00 2.50 7.00 4.00 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 Required: 16,000 units 10,000 units 6,000 units 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. Product Units Produced
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