A company makes four products that have the following characteristics: Product A sells for $50 but needs
Question:
A company makes four products that have the following characteristics: Product A sells for $50 but needs $20 of materials and $20 of labor to produce; Product B sells for $75 but needs $40 of materials and $20 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.
Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. If market demand for each product is 80 units per week, what is the optimal product mix?
Step by Step Answer:
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill