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Cannon Inc manufactures four types of security cameras; Doorbell, High Def, infrared and Corner Mounted and all these products are manufactured in a semi-automated system.
Cannon Inc manufactures four types of security cameras; Doorbell, High Def, infrared and Corner Mounted and all these products are manufactured in a semi-automated system. However, due to the Covid 19 pandemic and import restrictions, materials:- metal 1 availability is 8,000 Kg and Metal 2 is 16,500 kg. Assume that alternative metal is also not available in short term, thus, the company is seeking to limit the manufacturing of cameras which contribute less to its profitability. Production requirements and sales details relating to Products are shown below: Door Bell High Def Infrared Corner Mounted (basic model) Selling price per unit $ 550 $780 $850 $420 Direct material, Metal 1 @$68 per Kg 2 3 4 1 Direct material, Metal 2 @$46 per Kg 2 4 5 3 Direct labour@ $55 per Direct Labour Hour 2 3 4 3 Variable overhead @ $14 per Direct Labour Fixed overhead Allocated at $8.00 per Direct Labour Hr. Sales demand units (annual) 1,250 1,120 925 1,400 Other Operating Cost $ 245,790 and selling and admin cost total $ 272,990 Required. Compute the optimal production for Cannon Limited. Compute the total profit expected from the optimal production
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