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A company manufactures two products, A and B. Both products utilise the same material and require skilled labour. Materials and skilled labour are the only
A company manufactures two products, A and B. Both products utilise the same material and require skilled labour. Materials and skilled labour are the only variable costs. Product details are as follows: Selling price Material costs Skilled labour costs Materials cost 5 per kg. Skilled labour costs 8 per hour. For the month of May 2020 maximum expected demand is for 1,000 units of A and 1,500 units of B. In May 2020 there is expected to be a restriction on the availability of both material and skilled labour. There are 4,500 kgs. of Material available and 4,500 hours of skilled labour. To maximise expected contribution how much A and B should be produced
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