Hanson Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows:
a.In what order should Hanson prioritize production of the products?
b.How many of each product should be sold during the labor shortage to maximize profit?
c.What is the total contribution margin if Hanson prioritizes production according to its limited resources?

Question

Hanson Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows:
  a.In what order should Hanson prioritize production of the products?
b.How many of each product should be sold during the labor shortage to maximize profit?
c.What is the total contribution margin if Hanson prioritizes production according to its limited resources?

Quizplus · Accepted Answer

The Answer of Hanson Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows:
  a.In what order should Hanson prioritize production of the products?
b.How many of each product should be sold during the labor shortage to maximize profit?
c.What is the total contribution margin if Hanson prioritizes production according to its limited resources?