Why the company should produce in order to maximize


XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 200,000 machine hours per year. The following information is available for planning purposes: Product A Product B Product C demand for next year ............. 100,000 units 200,000 units 150,000 units selling price per unit ........... $18 $28 $23 variable costs per unit .......... $16 $21 $20 It is known that it takes 0.40 machine hours to produce one unit of Product A; 0.70 machine hours to produce one unit of Product B; and 0.50 machine hours to produce one unit of Product C. Calculate the number of units of Product C that XYZ Company should produce in order to maximize its net income.

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Accounting Basics: Why the company should produce in order to maximize
Reference No:- TGS0715860

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