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A company has the following data relating to two products that require skilled labour. Currently there is a shortage of labour and has to prioritise

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A company has the following data relating to two products that require skilled labour. Currently there is a shortage of labour and has to prioritise one product to maximise profit until more labour can be found. They are currently limited to 1000 Direct Labour Hours (DLH). Product A Product B Sell Price (per metre) $200.00 $225.00 Variable production costs per $85.00 $95.00 metre Contribution margin (SP-VC) $115.00 $130.00 Labour hours(DLH) to produce: 0.25 0.28 Weekly Demand (if all orders could 2500 1900 be fulfilled in metres) Required enter the number of the LEAST (2nd) product prioritised and indicate which product by entering the letter A or B after the number e.g. If you wish to make Product A first and you can only make up to 50 of product B then type 500 B

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