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10) Capacity Facts and circumstances: A company produces three different products on several identical machines. The annual capacity is restricted to 12,000 machine hours. The
10) Capacity Facts and circumstances: A company produces three different products on several identical machines. The annual capacity is restricted to 12,000 machine hours. The controller has prepared the following overview. Please help her to find out the product mix with the maximum contribution possible using the form below: Required: Which quantities of X, Y and Z should be produced and what would be the maximum contribution? Components Sales price Variable costs Allocated fixed costs Total cost Machine hours per unit Estimated sales demand (units) X Y Z 110 80 190 70 40 150 60 20 10 130 60 160 1 2 1000 3000 2000
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