The Valor Company manufactures two products: L and M. The costs and revenues are as follows:
$$\begin{array} { l c c }
& \text { Product L } & \text { Product M } \
\text { Sales price } & \$ 150 & \$ 112 \
\text { Variable cost per unit } & 90 & 68 \
\text { Machine hours per unit } & 15 & 10
\end{array}$$
Total demand for Product L is 2,000 units and for Product M is 1,000 units. Machine time is a scarce resource. During the year, 36,000 machine hours are available.
Required:
a. How many units of Products L and M should Valor produce?

Question

The Valor Company manufactures two products: L and M. The costs and revenues are as follows:
 $$\begin{array} { l c c } 
& \text { Product L } & \text { Product M } \
\text { Sales price } & \$ 150 & \$ 112 \
\text { Variable cost per unit } & 90 & 68 \
\text { Machine hours per unit } & 15 & 10
\end{array}$$ 
Total demand for Product L is 2,000 units and for Product M is 1,000 units. Machine time is a scarce resource. During the year, 36,000 machine hours are available.
Required:
a. How many units of Products L and M should Valor produce?

Quizplus · Accepted Answer

The Answer of The Valor Company manufactures two products: L and M. The costs and revenues are as follows:
 $$\begin{array} { l c c } 
& \text { Product L } & \text { Product M } \
\text { Sales price } & \$ 150 & \$ 112 \
\text { Variable cost per unit } & 90 & 68 \
\text { Machine hours per unit } & 15 & 10
\end{array}$$ 
Total demand for Product L is 2,000 units and for Product M is 1,000 units. Machine time is a scarce resource. During the year, 36,000 machine hours are available.
Required:
a. How many units of Products L and M should Valor produce?

The Valor Company Manufactures Two Products: L and M Total Demand for Product L Is 2,000 Units and for Costs