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Manchester Producers Enterprise Limited (MPEL) manufactures three products: Glor, Shor and Dhor. Details for the products and resource requirements are as follow: Machine time is
Manchester Producers Enterprise Limited (MPEL) manufactures three products: Glor, Shor and Dhor. Details for the products and resource requirements are as follow: Machine time is a bottleneck resource and maximum capacity is 200 machine hours. Operating cost which includes direct labour costs are $6,000 per week. The direct labour costs are $10 per hour. Required: a. Determine the profit maximizing outputs and the maximum profit ( 6 marks) b. Calculate the TPAR at this profit maximizing output (3marks) c. Based on the TPAR calculated in (b) what decision should management make
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