Here is the process flow for Products A, B, and C. Products A, B, and C sell

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Here is the process flow for Products A, B, and C. Products A, B, and C sell for $20, $25, and $30, respectively. There are only one Resource X and one Resource Y, which are used to produce A, B, and C for the numbers of minutes stated on the diagram, Raw materials are needed at the process steps as shown, with the costs in dollars per unit of raw material. (One unit is used for each product.) The market will take all that you can produce.

a. Which product would you produce to maximize gross margin per unit?

b. If sales personnel are paid on commission, which product or products would they sell and how many could they sell?

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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