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Calculate the number of units of each model

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Question - Fender produces three guitars: the Stratocaster, Dreadnought, and Telecaster. A limitation of 720 labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows:

 

STRATOCASTER

DREADNOUGHT

TELECASTER

Unit selling price

$960

$600

$1,260

Unit variable costs

$600

$300

$1,080

Labor hours per unit

36

24

36

In order for Fender to maximize profits, calculate the number of units of each model that should be manufactured.

Reference no: EM131570043

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