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ABC Ltd. makes two produces, Alpha and Beta. The company made a 500,000 profit last year and proposes an identical plan for the coming year.
ABC Ltd. makes two produces, Alpha and Beta. The company made a 500,000 profit last year and proposes an identical plan for the coming year. The relevant data for last year are summarized in Table 1. Table 1: Actual for last year Product Alpha Beta 20,000 40,000 20 40 25 50 Actual production and sales (units) Total costs per unit Selling price per unit (25% on cost) Machining time per unit (hours) Potential demand at above selling prices (units) 2 1 30,000 50,000 Fixed costs were * 4, 80,000 for the year, absorbed on machining hours which were fully utilized for the production achieved. You are required to calculate the plan to maximize profits for the coming year based on the data and selling prices in Table 1
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