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JP Corp. - Utilization of a Constraint JP Corp. makes three main products for the following selling price, cost, and labor requirement per unit. Demand
JP Corp. - Utilization of a Constraint JP Corp. makes three main products for the following selling price, cost, and labor requirement per unit. Demand of each product is also included below: Product A $600 $350 5 Product B Product C $300 Selling price per unit Variable cost per unit Direct labor hours per unit Demand 1,000 a. In what order should JP prioritize production of the products? 1. Product B 2. Product A 3. Product C 50 GOB $120 3 60 2,000 $400 $360 230 500 A: 600-350 5 = 50 = CM per hour B: 300-120 3 = 60 = CM per hour 2:400-300= 2 = 20 = CM per hour b. If only 9,000 direct labor hours are available due to a labor shortage, how many units of each product should be produced and sold in order to maximize profit?
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