Question
Love furniture makes two products bookshelves selling for $5000 and cabinets selling for $8000. The direct cost per unit is $3000 and $4000, respectively. The
Love furniture makes two products bookshelves selling for $5000 and cabinets selling for $8000. The direct cost per unit is $3000 and $4000, respectively. The company has no difficulty in selling all the product it can manufacture. The assembly department has 60 hours available per week. the finishing department can handle up to 48 hours of work per week. Manufacturing one bookshelf requires 4 hours in assembly and 2hours in finishing.Each cabinet requires 2 hours in assembly and 4 hours in finishing. How can management allocate the limited man-hours of the 2 department in a way which will secure the largest possible return?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started