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SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining
SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product:
Table
Chairs
Cabinets
Bookshelves
CM/Unit
P25
P20
P28
P24
DLH/Unit
5 hours
2 hours
7 hours
5 hours
Maximum demand
3,500 units
12,000 units
5,000 units
3,000 units
What will be the highest contribution margin if we prioritize the products properly?
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