Question

the time available on a special machine. Data on the products and time required on the special machine are summarised in the following chart. Product A Product B Product C Product D Product E Selling Price $ 12 $ 15 $ 18 $ 24 $ 32 Variable manufacturing $ 8 cost $ 9 $ 11 $ 12 $ 18 Variable marketing cost $ 1 $ 1 $ 3 $ 2 $ 6 Machine hours needed per unit $ 0.2 $ 0.3 $ 0.25 $ 0.5 $ 0.4 Maximum unit demand 10 000 per period 7 500 20 000 1 500 2 000 The firm has only 5500 hours of time available on the special machine per period. Fixed costs are $110 000 per period unshine company offers Riteway to supply and to market products A, B,C,D, and E for $ 10, $12,$15,$15,$25 respectively. quirements What is the production plan for each product to be produced and sold to maximize income? ( 10 marks) hat is the profit/ loss of that production plan ( 2 marks)