Question
67. Limited manufactures specialist medical equipment. Recruitment and training of manufacturing staff is difficult and C's operations management estimates that only 160 000 hours of
67. Limited manufactures specialist medical equipment. Recruitment and training of manufacturing staff is difficult and C's operations management estimates that only 160 000 hours of labour at a rate of $50 per hour will be available in the next financial year. The following details relate to C's planned production of three products X, Y and Z for the next 12 months.
x y z
selling price 65 315 200
materials cost 10 50 40
labour hours 1 5 3
maximum demand 100,000 20,000 25,000
To maximise profits the products C should manufacture are:
A.Y then Z.
B.Y then Z, then X.
C.X then Z. (explain why )
D.X then Z, then Y.
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