Problem

Making Decisions with Constrained ResourcesBarclay manufactures three types of stained gla...

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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