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14. A company manufactures and sells four products A, B, C and D. Sales demand cannot be met owing to a shortage of skilled labour.
14. A company manufactures and sells four products A, B, C and D. Sales demand cannot be met owing to a shortage of skilled labour. Details of the four products are:
A | B | C | D | |
Sales demand in units | 1,500 | 2,000 | 1,800 | 1,900 |
Contribution /unit | 2.80 | 2.60 | 1.90 | 2.40 |
Contribution/sales % | 30 | 40 | 50 | 45 |
Skilled labour hours/unit | 1.4 | 1.2 | 0.9 | 1.0 |
In what order should the products be made in order to maximise profit?
A) | Product A, Product B, Product D, Product C |
B) | Product C, Product D, Product B, Product A |
C) | Product B, Product D, Product C, Product A |
D) | Product D, Product B, Product C, Product A |
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