FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Sunland 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
$ 3.00
$ 1.20
$ 0.50
0.75 hours
700
B
$ 5.00
$ 3.40
$ 1.00
1.25 hours
650
C
$ 13.00
$ 7.00
$ 3.50
2.00 hour
250
The company has only 1,600 direct labor hours available to commit to production of any
new products.
How many of each product should Sunland 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.)
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