Question
Daisley Products Inc. makes two products--B17U and R94X. Product B17U's selling price is $160.00 and its unit variable cost is $86.00. Product R94X's selling price
Daisley Products Inc. makes two products--B17U and R94X. Product B17U's selling price is $160.00 and its unit variable cost is $86.00. Product R94X's selling price is $288.00 and its unit variable cost is $164.80. The monthly demand is 1,390 units for product B17U and 590 units for R94X. The constrained resource is a particular machine that is available for 11,300 minutes each month. Each unit of product B17U requires 4 minutes on this machine and each unit of product R94X requires 14 minutes on this machine. |
Up to how much should the company be willing to pay to obtain enough of the constrained resource to satisfy demand for the two existing products? |
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