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Calculate the number of units of product c

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XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limitedto 200,000 machine hours per year. The following information is available forplanning 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 ..........    $15     $20 $21

It is known that it takes 0.50 machine hours to produce one unit of Product A;0.70 machine hours to produce one unit of Product B; and 0.40 machine hours toproduce one unit of Product C.

Calculate the number of units of Product C that XYZ Company should produce inorder to maximize its net income. Do not use decimals, the $ or type the wordunits after your answer.

Reference no: EM131767458

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