How many of each product should Carla Vista Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) A enter a number of units rounded to 0 decimal places  B enter a number of units rounded to 0 decimal places  C enter a number of units rounded to 0 decimal place

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Carla Vista Co. is considering the introduction of three new products. Per unit sales and cost information are as follows:

A
B
C
Sales
$    3.00            $    5.00            $    14.00        
Variable costs
$    1.20            $    3.40            $    7.00        
Fixed costs
$    0.50            $    1.00            $    3.50        
Labor hours per unit
0.75    hours            1.25    hours            2.00    hours    
Monthly demand in units
800                650                250        

The company has only 1,700 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 per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

A
enter a number of units rounded to 0 decimal places 

B
enter a number of units rounded to 0 decimal places 

C
enter a number of units rounded to 0 decimal places 

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