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W Incorporation produces three products, Product P, Product Q and Product R. Product P requires 6 Labor hours per unit to be completed, Product B requires 8 labor hours per unit to be completed and Product C requires 4 labor hours per unit to be completed. The company's labor hours are limited to 60,000 hours. The information related to the three products are given below: Particulars Selling price per unit Variable cost per unit Demand (units) Product P S600 $350 5500 Product Q $800 $600 4800 Product R $200 $150 2000 Calculate the maximum number of units that can be produced for Product P provided the company applies the policy of producing as per optimal utilization of the constrained resource. a. 4200 units b. 5500 units c. 3600 units d. 2140 units |
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