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Optimizing Product Mix. California Products Company has the capability of producing and selling three products. Each product has an annual demand potential (at current pricing
Optimizing Product Mix. California Products Company has the capability of producing and selling three products. Each product has an annual demand potential (at current pricing and promotion levels), a variable contribution, and an annual fixed cost. The fixed cost can be avoided if the product is not produced at all. This information is summarized as follows: Each product requires work on three machines. The standard productivities and capacities are as follows: a. Determine which products should be produced, and how much of each should be produced, in order to maximize profit contribution from these operations. b. Suppose the demand potential for product K were doubled. What would be the maximum profit contribution
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