Question - Fender produces three guitars: the Stratocaster, Dreadnought, and Telecaster. A limitation of 720 labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows:
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STRATOCASTER
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DREADNOUGHT
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TELECASTER
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Unit selling price
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$960
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$600
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$1,260
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|
Unit variable costs
|
$600
|
$300
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$1,080
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|
Labor hours per unit
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36
|
24
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36
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In order for Fender to maximize profits, calculate the number of units of each model that should be manufactured.