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Company produces and sells four products: A, B, C, and D. The following data relate to its four products: A B C D Daily demand
Company produces and sells four products: A, B, C, and D. The following data relate to its four products:
A | B | C | D | |
Daily demand in units | 90 | 50 | 80 | 70 |
Selling price per unit | $80 | $110 | $120 | $100 |
Direct material per unit | $15 | $35 | $30 | $25 |
Direct labor per unit | $18 | $25 | $20 | $30 |
Fixed cost per unit | $20 | $10 | $18 | $28 |
Other variable cost per unit | $5 | $5 | $5 | $5 |
Labor time in minutes per unit | 10 | 20 | 15 | 12 |
There are total of 2,700 minutes available per day.
University Company Uses the traditional method for scarce resource maximization.
Problem 5.4
How many units of product B should be produced each day?
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