5. Shown on the next page is a flowchart that provides selling prices, demand, production times, and material cost information for two products a company produces. The company has worked to reduce setup times to such short times that they can be disregarded.

The resources are available 900 minutes a day for 5 days a week.

a. Where is the constraint, if the company has one?

b. What feasible product mix will provide the company its highest contribution to profit and overhead?

Transcribed Image Text:

M Product: $175 Selling Price: 500 Weekly Demand: R4 R4 4 min R3 5 min 22 R2 9 min M $200 450 HQ R4 5 min 23 R3 6 min R1 8 min Material: Unit Cost: M N $60 $70