Question
A company is able to produce four products and is planning its production mix for the next period. Estimated cost, sales, and production data follow:
A company is able to produce four products and is planning its production mix for the next period.
Estimated cost, sales, and production data follow:
Product W X Y Z
Selling Price/unit 29 36 61 51
Labour (@ 5/hr) 15 10 35 25
Material (@ 1/kg) 6 18 10 12
Contribution 8 8 16 14
Resources/Unit
Labour (hours) 3 2 7 5
Materials (Kgs.) 6 18 10 12
Maximum Demand (Units) 5000 5000 5000 5000
Based on the above data, which is the most appropriate mix under the two following assumptions?
If labour hours are limited to 50,000 in a period or
If material is limited to 110,000 kgs in a period
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