A Company Manufactures Products A, B, and C

question 40

Multiple Choice

A company manufactures products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for departments I, II, and III are 930, 1,060, and 840, respectively. The time requirements (in hours/unit) and the profit per unit for each product are as follows: If management decides that the number of units of product B manufactured must equal or exceed the number of units of products A and C manufactured, how many units of each product should the company produce in order to maximize its profit?

• A) The company should produce 280 units of product A, 0 units of product B, and 280 units of product C to realize a maximum profit of $9,240.
• B) The company should produce 0 units of product A, 280 units of product B, and 280 units of product C to realize a maximum profit of $7,56.0
• C) The company should produce 0 units of product A, 280 units of product B, and 280 units of product C to realize a maximum profit of $7,560.