Ivanhoe 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 A с $ 3.00 $ 1.20 $ 0.50 0.75 hours 800 B $ 5.00 $ 3.40 $ 1.00 1.25 hours 650 C $18.00 $ 12.00 $ 3.50 The company has only 1,800 direct labor hours available to commit to production of any new products. How many of each product should Ivanhoe 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.) 2.00 hours 250
Ivanhoe 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 A с $ 3.00 $ 1.20 $ 0.50 0.75 hours 800 B $ 5.00 $ 3.40 $ 1.00 1.25 hours 650 C $18.00 $ 12.00 $ 3.50 The company has only 1,800 direct labor hours available to commit to production of any new products. How many of each product should Ivanhoe 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.) 2.00 hours 250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Uramilaben
Transcribed Image Text:Ivanhoe 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
A
с
$ 3.00
$ 1.20
$ 0.50
0.75 hours
800
B
$ 5.00
$ 3.40
$ 1.00
1.25 hours
650
C
$18.00
$ 12.00
$ 3.50
The company has only 1,800 direct labor hours available to commit to production of any new products.
How many of each product should Ivanhoe 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.)
2.00 hours
250
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