Variable selling and administrative expenses are 60 per

Reference no: EM13573315

Crest Information Technologies manufactures three sizes of copiers: Light usage, Medium usage, Heavy usage. Potentail sales include 200 units of of Light, 240 units of medium and 200 units of heavy per month. The maximum machine hours available is 12,000 per month. Product information is provided below.

Light Medium Heavy

Unit selling price $300 $500 $1,000

Unit Manaufacturing costs:

Variable (120) (240) (400)

Fixed (80) (100) (240)

Unit gross profit $100 $160 $360

Machine hour 20 40 100

Variable selling and administrative expenses are $60 per unit for all products. Fixed manufacturing costs of $60,000 are assigned at the rate of $5 per machine hour. How many of each product should be produced per month using the short run strategy?

Reference no: EM13573315

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