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Allocation of scarce resources Sierra Sound Systems mukes electronic products, Because the employees of one of the campany's plants are on strike, the Chicago plant
Allocation of scarce resources Sierra Sound Systems mukes electronic products, Because the employees of one of the campany's plants are on strike, the Chicago plant isoperatingat peak capacty. it makes towo electronk. products. wireless headphones and earbuds. Prevenchy, the company can sei as many of euch product as can be made, but making earbuds tales bwee as lore in producuen labor time as besdphooes. The compary's prodoction capacity is 150,000 labor hours per morsh Data on each product are as follome: Fued costs are $360,000 per mont How mari ot each product should the clivego plant mate? units of headphones units of earbuds Fixed costs are $360,000 per month. How many of each product should the Chicago plant make? units of headphones units of earbuds
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