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Due to supply shortages of light weight material that is needed to produce its sports bicycles, the management of a German bicycle factory has
Due to supply shortages of light weight material that is needed to produce its sports bicycles, the management of a German bicycle factory has to make a decision which product to focus on under these special circumstances. The different bicycles consume different amounts of this material. In total, the company has only 8,000 kilograms in stock and new deliveries are not expected to arrive soon. a. Please advise the head of operations, which product he should focus on in order to maximize the profit of the company. b. Can you think of two other factors that he should consider when making this decision? Bicycle model Fast1 Sales price 800 Total variable cost 500 Fast2 1,000 650 Prodrive 1,600 Superdrive 2,000 1450 1600 Kilograms of light weight material required to manufacture 1 unit 1,5 2,5 3 4
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a Recommendation for Maximizing Profit Focus on producing the Fast2 bicycles Heres the reasoning Pro...Get Instant Access to Expert-Tailored Solutions
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