Question
(Limiting Factor-optimal production plan) Muuths Bhd currently produces four products (calculators) namely BWiz, GFast, ESmart and SSleek. Learning from the past year, the company is
(Limiting Factor-optimal production plan)
Muuths Bhd currently produces four products (calculators) namely BWiz, GFast, ESmart and SSleek. Learning from the past year, the company is planning its production mix for the coming period. The following data is provided by the companys accountant:
| BWiz | GFast | ESmart | SSleek |
Unit selling price (RM) | 19 | 25 | 40 | 50 |
Labour cost (RM) | 6 | 12 | 18 | 24 |
Materials cost (RM) | 9 | 9 | 15 | 16 |
Maximum demand (units) | 1000 | 5000 | 4000 | 2000 |
Muuths Bhd current labour hourly rate is RM6 per hour and workers are only able to provide a maximum of 12000 hours for the period under consideration.
Required:
- Determine the optimal production plan for Muuths Bhd
- Compute the total contribution earned by Muuths Bhd from the above production plan
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