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Exercises 1. A firm manufactures two products, A and B. There is only one machine with 3000 hours available per year. Each unit of product
Exercises 1. A firm manufactures two products, A and B. There is only one machine with 3000 hours available per year. Each unit of product A requires 3 machine hours while each unit of Product B requires 2 machine hours. A summary of the profitability of each product is provided below. Product A $150 Product B $120 Selling price Costs: Direct material Direct labour Variable overhead $60 $15 $15 $15 $25 $20 Maximum yearly demand for Products A is 800 units and for Product B is 1000 units. Required: Determine how many units of each product should be produced to maximise yearly profit
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