(Answered) Company manufacturers and sells three products ab amp c the

Accounting

Company manufacturers and sells three products A,B & C. The unit cost and revenue structure for each product and its maximum forecast demand for the coming period are as follows:-

Product	A	B	C
Selling price per unit (Shs.)	140	100	120
Variable cost per unit (Shs.)	70	60	80
Maximum demand (units)	500	300	300
Machine hours required per unit	10	4	5

The company has a maximum of 6000 machine hours available during the coming period

Required

Calculate the number of units of each product A, B, and C which should be produced and sold in order to maximize profit

Calculate the maximum profit earned from the decision strategy per 1

Suggest other factors which management may wish to consider which could result in a change in their decision

Calculate the product units to be produced and sold and the net profit earned if the company wish to maximize sales of product A because it is thought to be a future market leader

Calculate the product units to be sold and the net profit earned it the company agree to produce a minimum of 70% of the maximum demand of each product in order to maintain market spread.

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