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A company is producing design furniture. The product mix includes tables, settees and bookcases. The limiting factor is scarcity of skilled workers, the maximum number

A company is producing design furniture. The product mix includes tables, settees and bookcases. The limiting factor is scarcity of skilled workers, the maximum number of available working hours per annum is estimated at 6000 hours. In which order should they prioritise the items and how many of each item should be produced to maximise profit?

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A company is producing design furniture. The product mix includes tables, settees and bookcases. The limiting factor is scarcity of skilled workers, the maximum number of available working hours per annum is estimated at 6000 hours. In which order should they prioritise the items and how many of each item should be produced to maximise profit? Table Settee Bookcase Selling price 720 900 450 Direct material 120 250 80 Direct labour 260 260 130 Allocated fixed cost 150 150 75 Profit 190 240 165 Hours required for producing 1 item 20 20 10 Expected demand 150 150 200 1) Which priority should be given to these items of furniture? [Select] 2) How many items of each should be produced: a) [Select] tables 7 b) [Select] settees c) [Select] bookcases

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