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manufacturer produces three products (A, B, C) that are fabricated and assembled in four different workstations (W, X, Y, Z) using a small batch process.

manufacturer produces three products (A, B, C) that are fabricated and assembled in four different workstations (W, X, Y, Z) using a small batch process.

Each of the products visits every one of the four workstations, though not necessarily in the same order.

Batch setup times are negligible.

It can make and sell up to the limit of its demand per week, and there are no penalties for not being able to meet all the demand.

Each workstation is staffed by a worker dedicated to work on that workstation alone, and is paid $15 per hour.

Variable overhead costs are $8000/week. The plant operates one 8-hour shift per day, or 40 hours/week.

raw material for A is $13, for B $14 and for C $15.

If Demand for A is 65 units/week, for B 70 units per week and for C 80 units per week.

If selling price for A is $90, B $85 and price of C is $80

How much is the profit for this company???

a.

$12775

b.

$4775

c.

$18200

d.

$13425

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