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A company has three products it can make on the same mechanised assembly line as shown below along with the demand it normally experiences for
A company has three products it can make on the same mechanised assembly line as shown below along with the demand it normally experiences for each product. Due to the need for urgent maintenance on its manufacturing equipment, the company will have limited machine hours (MHs) available for the next two months. C Sell Price (per unit) $15.00 $55,00 $30.00 Variable production costs per unit $10.00 $30.00 $15.00 Contribution margin (SP-VC) per unit $5.00 $25.00 $15.00 Machine hours to produce each unit 0.05 0.2 0.1 Monthly Demand (if all orders could be fulfilled) 15000 3000 4000 Required: If only 1250 MHs will be available for the next two months, and the company wanted to maximise profit during this period of constraint, calculate how many of each product it would target and enter below the number of units to be produced of the LOWEST
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