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Rosie's Company Has Three Products,P1,P2,and P3

Question 120

Multiple Choice

Rosie's Company has three products,P1,P2,and P3.The maximum Rosie's can sell is 65,000 units of P1,24,000 units of P2,and 12,000 units of P3.Rosie's has limited production capacity of 9,000 hours.It can produce 12 units of P1,6 units of P2,and 3 units of P3 per hour.Contribution margin per unit is $5 for the P1,$15 for the P2,and $25 for the P3.What is the most profitable sales mix for Rosie's Company?


A) 12,000 P1,24,000 P2,12,000 P3.
B) 10,800 P1,24,000 P2,12,000 P3.
C) 12,000 P1,20,000 P2,1,200 P3.
D) 16,800 P1,20,000 P2,12,000 P3.
E) 10,800 P1,25,000 P2,10,800 P3.

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