Pharoah Co. is considering the introduction of three new products. Below is the per unit sales and cost information for each product:**Product A:**- **Sales:** $3.00- **Variable Costs:** $1.20- **Fixed Costs:** $0.50- **Labor Hours per Unit:** 0.75 hours- **Monthly Demand in Units:** 800**Product B:**- **Sales:** $6.00- **Variable Costs:** $3.40- **Fixed Costs:** $1.00- **Labor Hours per Unit:** 1.25 hours- **Monthly Demand in Units:** 650**Product C:**- **Sales:** $16.00- **Variable Costs:** $10.00- **Fixed Costs:** $3.50- **Labor Hours per Unit:** 2.00 hours- **Monthly Demand in Units:** 250The company has a total of 1,700 direct labor hours available for the production of any new products.**Objective:**Determine how many units of each product Pharoah Co. should produce and sell to maximize its profit, considering the labor hour constraint. Round per unit calculations to 2 decimal places (e.g., 15.25) and final answers to 0 decimal places (e.g., 5,275).**Solution:**- Number of units for Product A: ____- Number of units for Product B: ____- Number of units for Product C: ____

Answer:- Cost volume profit analysis:- The impact of change in costs, sales volume, and selling…

Pharoah 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 C $ 3.00 $ 1.20 $ 0.50 0.75 hours 800 B $6.00 $ 3.40 $ 1.00 1.25 hours 650 C 16.00 $10.00 $ 3.50 The company has only 1,700 direct labor hours available to commit to production of any new products. How many of each product should Pharoah Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.) 2.00 hours 250

Pharoah 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 C $ 3.00 $ 1.20 $ 0.50 0.75 hours 800 B $6.00 $ 3.40 $ 1.00 1.25 hours 650 C 16.00 $10.00 $ 3.50 The company has only 1,700 direct labor hours available to commit to production of any new products. How many of each product should Pharoah Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.) 2.00 hours 250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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