Birdie Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17446 machine hours available a month.
The three products have the following data:
Selling price per unit for A: 6.00
Variable Cost per unit for A: 2.00
Machine hrs required for A: 2
Demand product in units for A: 1,000
Selling price per unit for B: 16.00
Variable Cost per unit for B: 4.00
Machine hrs required for B: 4
Demand for product in units for B: 4,000
Selling price per unit for C: 11.00
Variable Cost per unit for C: 6.00
Machine hrs required: 5
Demand for product in units: 1,000
How much of product A should be produced?