Answered: Chenwang Manufacturing has 18,000 labor…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Chenwang Manufacturing has 18,000 labor hours and 120,000 grams of material. The cost of labor per hour is $10, and material costs 60 cents per gram. The company manufactures three products: A, B and C. Quantity of material used per unit of each product, labor time used, demand, and selling price are given in the table below. Production has to equal or exceed demand.

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A
В
Material used per unit (grams)
15
9.
12
Labor hours per unit
1.5
2
Projected demand
2000
3500
3000
Price per unit
$60
$40
$45
Refer to Chenwang Manufacturing. At the optimal solution, the total profit generated by the company is:
O A.
$167,800
Ов.
$178,900
C.
$196,800
O D. $173,800

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