Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below: Products A B Demand in units 1,500 1,000 425 Selling price per unit Variable costs per unit $120 $100 $200 $84 $70 $130 Ounces per unit 5 3 2 What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.
Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below: Products A B Demand in units 1,500 1,000 425 Selling price per unit Variable costs per unit $120 $100 $200 $84 $70 $130 Ounces per unit 5 3 2 What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid
compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below:
Products
A
B
Demand in units
1,500
1,000
425
Selling price per unit
Variable costs per unit
$120
$100
$200
$84
$70
$130
Ounces per unit
3
2
5
What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19b2c75c-2249-4710-a129-b8b639feaa38%2F8d1d78fb-3911-4a71-b47e-2c9a43f96e84%2F0i8ah9c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your Company manufactures and sells three products that all use a liquid compound as an ingredient. The high demand for all three of these products exceeds the supply of liquid
compound that is available from suppliers and only 6,025 ounces are available. Information related to the three products is below:
Products
A
B
Demand in units
1,500
1,000
425
Selling price per unit
Variable costs per unit
$120
$100
$200
$84
$70
$130
Ounces per unit
3
2
5
What is the maximum annual net operating income that Your Company can make each year from these three products? Do not use $ in your answer.
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