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65. (p.967) The managing director of H Limited is setting the production plan for the next financial year. H has a shortage of skilled labour

65.(p.967)The managing director of H Limited is setting the production plan for the next financial year. H has a shortage of skilled labour and wishes to maximise the profitability of the company. H manufactures three products X, Y and Z. There is 200 000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product.

X Y Z

selling price 50 54 84

material costing 10 12 20

labour hours 2 3 4

maximum demand 40,000 20000 40000

Assuming all relevant information is provided, in what order should H manufacture its products to maximise profit in the current year?

A.Z then X

B.X then Z (why)

C.X, Y then Z

D.None of the given answers

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