28 The Columbia Furniture Mart manufactures desks, tables, and chairs. In order to manufacture these products, Columbia
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28 The Columbia Furniture Mart manufactures desks, tables, and chairs. In order to manufacture these products, Columbia must rent the appropriate equipment at a weekly cost of $2,000 for desks, $2,500 for tables, and $1,500 for chairs. The labor and material requirements for each product are shown in the following table, along with the selling price and variable cost to manufacture.
LABOR HOURS LUMBER
(sq. ft.)
SALES PRICE VARIABLE COST Desks 4 12 $135 $97 Tables 3 8 $110 $82 Chairs 2 6 $ 50 $32 There are 2,500 labor hours and 8,000 square feet of lumber available each week. Determine the product mix that maximizes weekly profit.
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Related Book For
Managerial Decision Modeling With Spreadsheets
ISBN: 9781292024196
3rd Edition
Authors: Barry Render
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