A manufacturer produces three products, A, B, and C. The profits for each unit of A, B, and C sold are $1, $2, and $3, respectively. Fixed costs are $19,000 per year, and the costs of producing each unit of A, B, and C are $4, $5, and $7, respectively. Next year, a total of 10,000 units of all three products is to be produced and sold, and a total profit of $17,000 is to be realized. If total cost is to be $68,000, how many units of each of the products should be produced next year?

A manufacturer produces three products, A, B, and C. The profits for each unit of A, B, and C sold are $1, $2, and $3, respectively. Fixed costs are $19,000 per year, and the costs of producing each unit of A, B, and C are $4, $5, and $7, respectively. Next year, a total of 10,000 units of all three products is to be produced and sold, and a total profit of $17,000 is to be realized. If total cost is to be $68,000, how many units of each of the products should be produced next year?

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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