Scarce Resources Long Beach currently manufactures 3 products with information as follows:
A, B, C
Selling Price: 56, 25, 140
Direct Mtaerial Cost: 12, 3, 60
Direct Labor Cost: 20, 15, 30
Variable Overhead: 12, 2, 6
The cost per direct labor hour is $10. Company has available only 24,000 direct labor hours. They do not have enough labor to satisfy all the demand. The Mximum demand for each product is:
A: 10,000
B: 20,000
C: 6,000
Calculate total contribution of the most profitable product mix. How many of each product should the company produce?
What are the nonfinancial factors in this decision?