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G.S.C Company produces three products, A, B, and C. Data concerning the three products follows (per unit): The same material is used in each product.
G.S.C Company produces three products, A, B, and C. Data concerning the three products follows (per unit): The same material is used in each product. The material costs $3 per kilogram with a maximum of 5,000 kilograms available each month. Required 1- Determine the maximum profit that can be made from 5,000kg of material. 2- Assume now that the required material is available without restriction and the company can fulfil each product's monthly market demand. The company allocates fixed costs to each product line based on production level. If a product is dropped, 50% of its allocated fixed costs can be avoided. Would the company benefit from dropping any of their product lines
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