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How much is profit associated with best product combination

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A company produces three products: A, B and C. One machine is used to produce the products. The contribution margins, sales demands, and time on machine (in hours) are as follows:

Market limit          Unit contribution margin       Hours on machine

A 100 units             P30                                   10 per unit

B 80 units           P20                                        5 per unit

C 150 units             P25                                     10 per unit

There are 3,000 hours available on the machine during the week. Total fixed cost is P10,000.

Required:

Question 1: How much is the profit associated with the best product combination?

Reference no: EM132715583

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