Problem $6-32$A $($Algo$)$ Allocating scarce resources $($Appendix$)$ LO $6-7$

The following information applies to the products of Rundle Company.

Selling price per unit

Variable cost per unit

Identify the product that should be produced or sold under each of the following

constraints. Consider each constraint separately.

Required

a$.$ One unit of Product A requires $2$ hours of labor to produce, and one unit of Product $B$

requires $4$ hours of labor to produce. Due to labor constraints, demand is higher than

the company's capacity to make both products.

b$.$ The products are sold to the public in retail stores. The company has limited floor space

and cannot stock as many products as it would like. Display space is available for only

one of the two products. Expected sales of Product A and Product B are $14,000$ units

and $10,000$ units, respectively.

c$.$ The maximum number of machine hours available is $46,000.$ Product A uses $4$ machine

hours, and Product $B$ uses $12$ machine hours. The company can sell all the products it

produces.