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Sharra Ltd manufactures three products, the details of which are as follows: Crew V neck Polo Selling Price BGN per unit 50 45 60 DM
Sharra Ltd manufactures three products, the details of which are as follows:
Crew V neck Polo
Selling Price BGN per unit 50 45 60
DM per unit 10 8 12
DL per unit 9 15 12
Other variable costs per unit 6 3 7
Monthly demand 160 180 140
Labor hours per unit 3 5 4
Labor is very specialized and is limited. Sharra only has 6 workers who can do this job. Each of them works for 140 hours per month.
Required:
b) What options could Sharra Ltd consider to increase the labor force?
c) How would this change if they can find two additional workers?
a) Given the restricted labor work force available, which combination of products (per month) should be manufactured if the
business is to produce the highest profit AND what total contribution margin would this generate?
P.S. A photo of the table in Excel and how it is supposed to look like.
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