Jean Radcliffe, Inc., produces two products, tables and chairs. The contribution margins for these products are $4
Question:
Jean Radcliffe, Inc., produces two products, tables and chairs. The contribution margins for these products are $4 per chair and $12 per table. Tables require 5 board feet of oak and | board foot of pine. Chairs require 2 board feet of oak and 3 board feet of pine. There are a total of 1,000 board feet of oak and 700 board feet of pine available for production. It takes 3 hours to make a table and 2 hours to make a chair and 500 labor hours are available for production. Demand projections indicate that no more than 150 tables and 300 chairs should be made.: 258 Required:
Assuming the company wants to maximize the total contribution margin, solve this problem using the graphic method of linear programming.
Step by Step Answer:
Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg