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Constraint #1 is that the firm has only 7,000 labour hours to work with Constraint #2 is that the firm has to use all 7,000

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Constraint #1 is that the firm has only 7,000 labour hours to work with

Constraint #2 is that the firm has to use all 7,000 labour hours

Constraint #3 is that all of the types of sandwiches need to be sold. Cannot drop a product.

Given the current constraints, what would be the ideal product mix?

Appendix ! Sandwich Information Cubana Delight Existing Chacarero Beef Pambazo Chorizo Mediterranean Light 0.08 0.06 0.05 0.05 Labour per unit (hours) Estimated demand (units) Total labour hours 30,000 35,000 42,000 15,000 2,400 2,100 2,100 750 $9.50 $9.55 $9.00 $8.00 (4.35) (4.55) (5.00) (3.40) Sales price Direct materials Direct labour (1) Fixed overhead (2) Profit (0.96) (0.72) (0.60) (0.60) (3.43) $0.76 (3.43) $0.85 (3.43) $(0.03) (3.43) $0.57

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