Question
Dolphin Company produces and sells four products; M, N, O and P. The company uses the traditional approach to determine its most profitable product mix.
Dolphin Company produces and sells four products; M, N, O and P. The company uses the traditional approach to determine its most profitable product mix. Direct labor is the constraint. The following data relate to its four products. Weekly Demand Selling Price per Variable Cost per Direct Material Labor Time in Product (in Units) Unit Unit Cost per Unit Hours per Unit M 360 200 90 20 N 240 140) 60 50 80 180 100 10 524 P 300 150 75 75 30 3 There are total of 990 hours available per week. Total fixed costs are $3,100 per week. Problem 3-3 How many units of product O should be produced each week? 300 130 90 00
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