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Question 5: The record label is expanding into physical media. Model the appropriate product mix of vinyl, tape and CD; using the respective labour, proportional
Question 5: The record label is expanding into physical media. Model the appropriate product mix of vinyl, tape and CD; using the respective labour, proportional material, price, and costs given in the table below:
Work out the profit (factoring in 300 units of Digital made) and calculate how much of the other remaining 3 product types (vinyl, tape, CD) should be made, along with the total labour used and material. Constrain your labour used to 1000 hours and your material to 400 units
\begin{tabular}{|l|l|l|l|l|} \hline Product & Vinyl & Tape & CD & Digital \\ \hline Labour & 2 & 0.8 & 0.2 & 0.1 \\ \hline Material & 0.8 & 0.4 & 0.1 & 0 \\ \hline Unit price & 12 & 8 & 9.99 & 3.20 \\ \hline Variable cost & 5.50 & 3 & 4.50 & 0.50 \\ \hline Demand & 300 & 50 & 500 & 300 \\ \hline Unit profit & 6.50 & 5 & 5.49 & 2.70 \\ \hline \end{tabular}Step by Step Solution
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