Accept in order to maximize operating income

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Reference no: EM131265283

Assume an engineering company provides services for three types of clients. Each service requires a different amount of a specific form of specialized labor that is in limited supply. If the company is limited to 12,000 hours of this specialized labor, how many clients of each type should it accept in order to maximize operating income?

Client Type A B C

Revenue per client $1,700 $3,800 $5,300

Variable costs per client $800 $1,400 $2,700

Specialized labor hours required per client 6 15 20

Maximum clients available 800 600 200

Reference no: EM131265283

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