Question
Four products are manufactured by MNO: maxi midi mini micro Selling price per unit 600 400 300 250 variable labor cost per unit(40$/hour) 250 120
Four products are manufactured by MNO:
maxi midi mini micro
Selling price per unit 600 400 300 250
variable labor cost per unit(40$/hour) 250 120 140 90
variable material cost per unit 275 250 100 110
Part 1: Each of the four products takes two production hours. Assuming production hours as the overall capacity constraint, the ranking order of products for MNO to maximize its profitability is:
a. maxi, midi, mini , micro
b. maxi, mini, micro, midi
c. micro, mini, maxi , midi
d. micro, midi, maxi, mini
Applying the theory of constrains and a throughput accounting approach, and assuming labor to be the bottleneck constraint, the ranking order of products for MNO to maximize its profitability within the labor constraint is:
a. maxi,midi,mini, micro
b. micro, mini, maxi, midi
c. maxi, mini, micro, midi
d. micro, midi, maxi, mini
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