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Fabrinis produces two products namely Spaghetti and Macoroni. The statement below shows the selling price and product costs per unit for each product. SPAGHETTI MACORONI

Fabrinis produces two products namely Spaghetti and Macoroni. The statement below shows the selling price and product costs per unit for each product.

SPAGHETTI MACORONI
R R
Selling price per unit 71 49
Variable costs per unit
  • Direct material
21 15
  • Direct labour
12 8
  • Variable overhead
8 4
FiSpaghettied cost per unit
  • Fix overhead
20 10
Total product cost 61 37
Profit per unit 10 12
Additional information:
Demand per period (units) 6 000 8 000
Minutes per unit 24 16
Kilograms per unit 21 15

Direct material is limited to 35 000 kilograms for the period.

1.The objective function that will maximize the contribution of the company can be determined as follow:

SPAGHETTI + MACORONI

2. The constraint on the kilograms of material available for production can be determined as:

SPAGHETTI + 15 MACORONI <

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