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XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 200,000 machine hours per year. The following information is available for planning 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 .......... $16 $21 $20 It is known that it takes 0.40 machine hours to produce one unit of Product A; 0.70 machine hours to produce one unit of Product B; and 0.50 machine hours to produce one unit of Product C. Calculate the number of units of Product C that XYZ Company should produce in order to maximize its net income.
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