Question
Problem 22S-12 (Algo) The following diagram shows the flow process, raw material costs, and machine processing time for three products: A, B, and C. There
Problem 22S-12 (Algo) The following diagram shows the flow process, raw material costs, and machine processing time for three products: A, B, and C. There are three machines (W, X, and Y) used in the production of these products; the times shown are in required minutes of production per unit. Raw material costs are shown in cost per unit of product. The market will take all that can be produced.
$55. $60 $75
A. B. C.
10/Y-3 MIN. 15/Y-6 MIN 10/X-4MIN
15/W-2 MIN. 10/X-5 MIN 20/Y-6MN
10/X-1 MIN. 15/W-2MIN. 30/W-5MIN
a. Assuming that sales personnel are paid on a commission basis, which product should they sell? multiple choice
Product A
Product B
Product C
b. On the basis of maximizing gross profit per unit, which product should be sold? multiple choice
2 Product B
Product A
Product C c.
To maximize total profit for the firm, which product should be sold? multiple choice
3 Product A
Product B
Product C
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