Making Decisions with Constrained Resources
Barclay manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
| Product A | Product B | Product C |
Sales price | $35 | $45 | $75 |
Variable costs per unit | 17 | 21 | 32 |
Fixed costs per unit | 5 | 5 | 5 |
Required number of labor hours | 0.5 | 0.8 | 1.25 |
Barclay currently is limited to 16,000 labor hours per month.
Required:
Assuming an infinite demand for each of Barclay’s products, determine the company’s preferred production. Justify your answer.
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