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Required (a) Ignoring the capacity constraint of machine-hours, which product should Dodecagon Pty Ltd produce for maximising the division profit and why? Clearly show your
Required (a) Ignoring the capacity constraint of machine-hours, which product should Dodecagon Pty Ltd produce for maximising the division profit and why? Clearly show your workings to support your argument. (4 marks) (b) Considering the capacity constraint of machine-hours, how many units of each product should Dodecagon Pty Ltd. produce for maximising profit and why? Clearly show your workings to support your argument and show the maximum contribution margin (i.e., total revenues minus variable expenses) the company can achieve from each product and in total. (8 marks) (4+ 8 = 12 marks)Dodecagon Pty Ltd can produce two different types of products, Product A and Product B. There is a question regarding how many should the company produce for each product. Per unit Product A Product B Sales price $200.00 $220.00 Variable expenses $150.00 $140.00 Capacity constraint of required 2.00 1.00 machine-hours per unit produced You are analysing the product-mix options; the company has 2,000 machine-hours available to produce these products. Due to market demand, the company also must produce at least 200 units for each product. <
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