ACCE 720-Fender produces three guitars-the Stratocaster

by | Mar 18, 2020 | Uncategorized

  

Fender produces three guitars: the Stratocaster, Dreadnought, and Telecaster. A limitation of 720 labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows:

STRATOCASTER DREADNOUGHT TELECASTER

Unit selling price $960 $600 $1,260

Unit variable costs $600 $300 $1,080

Labor hours per unit 36 24 36

In order for Fender to maximize profits, calculate the NUMBER OF UNITS OF EACH MODEL THAT SHOULD BE MANUFACTURED.

  

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