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Question A firm makes and sells three products. Details are provided below: Availability of material and labour are limited to 100,000 metres and 57,000 hours
Question A firm makes and sells three products. Details are provided below: Availability of material and labour are limited to 100,000 metres and 57,000 hours respectively. Required: (i) Determine the binding constraint; (ii) Calculate contribution per unit of the binding constraint for each product and rank the products accordingly; (iii) Determine the optimum production mix and the resulting profit
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