Question
Solution to this problem please The product mix decision ABC Company produces product X, product Y, and product Z. All three products require processing on
Solution to this problem please
"The product mix decision ABC Company produces product X, product Y, and product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 1,800 hours per month. ABC Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product:"
Product x Product Y Product Z
Selling price 150 120 38
Variable cost 105 60 30
Machine time per unit 3 hours 2 hours 1 hour
Monthly demand 450 300 750
Determine how 1,800 hours of machine time should be allocated to the three products to provide the most profitable product mix
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