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Holt Manufacturing Company Produces Three Products in Its Dallas Factory

Question 170

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Holt Manufacturing Company produces three products in its Dallas factory.Data relating to the products are given below:
 Product A  Product B  Product C  Unit selling price $80$70$60 Variable manufacturing costs $52$50$46 Variable selling costs $4$4$4 Hours required per unit 21/21 Demand per period 3,0004,0002,600\begin{array}{|l|l|l|l|}\hline & \textbf { Product A } & \textbf { Product B } & \textbf { Product C } \\\hline \text { Unit selling price } & \$ 80 & \$ 70 & \$ 60 \\\hline \text { Variable manufacturing costs } & \$ 52 & \$ 50 & \$ 46 \\\hline \text { Variable selling costs } & \$ 4 & \$ 4 & \$ 4 \\\hline \text { Hours required per unit } & 2 & 1/2 & 1 \\\hline \text { Demand per period } & 3,000 & 4,000 & 2,600\\\hline\end{array} A total of 8,200 hours are available in the Dallas facility.

a.How many hours will be required to satisfy the demand for all three products?
b.How much of each product should be produced to maximize Hold's operating income?

Correct Answer:

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