- Your company produces three different products. The data for the products is shown below.
Raw materials | Packaging | Overhead (facility, equipment, salaries, shipping, etc.) | Production capacity | Sells for | |
Product A | $11 per product | $6 per product | $8 per product | 5 per hour | $95 each |
Product B | $8 per product | $4 per product | $8 per product | 6 per hour | $110 each |
Product C | $20 per product | $2 per product | $8 per product | 12 per hour | $80 each |
Your company is cutting back and can only produce one product, at least for a while. Obviously, it wants to produce the most profitable product. Which is the most profitable?