In: Accounting
Benkhadour Co. manufactures four different products. Because the quality of its products is high, the demand for them is greater than the company can satisfy.
Based on the inquiries made by current and potential customers, you have estimated the following for the coming year:
Product |
Estimated Demand in Units |
Selling Price per Unit |
Direct Materials Cost per Unit |
Direct Labour Cost per Unit |
---|---|---|---|---|
A |
8,000 |
$ 50 |
$ 5 |
$ 5 |
B |
24,000 |
60 |
10 |
9 |
C |
20,000 |
150 |
25 |
30 |
D |
30,000 |
100 |
15 |
20 |
The following information is also available:
Instructions
Determine which products and how many units of each Benkhadour should produce in the coming year in order to maximize its operating income.
****** Produce 11,467 units of C *******
Please show all calculations. Would like a new explanation, already read the available answers.