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From the information provided here in respect of an engineering firm present statements of product mix which will yield the highest profit to the firm.
- From the information provided here in respect of an engineering firm present statements of product mix which will yield the highest profit to the firm.
Products A B C
Raw materials per unit (Kg) 10 6 15
Labour hours per unit @ $ 1 per hour 15 25 20
Selling price per ($) 125 100 200
Maximum production (units) 6,000 4,000 3,000
100,000kgs of raw material are available at $ 10 per kg. Maximum production hours are 184,000 with a possibility for a further 15,000 hours in overtime basis at twice the normal wage rate.
(b) Would recommend overtime?
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