Question
Svenska Stolar AB manufactures the two chairs Forest and Rain. To make these two chairs uses a very rare and exclusive type of wood that
Svenska Stolar AB manufactures the two chairs Forest and Rain. To make these two chairs uses a very rare and exclusive type of wood that is cut down in distant land. Fortunately, Swedish has Stolar AB has succeeded in securing deliveries from the wood product specialists Amazonas Devastation Inc., which has bound to send 20 tonnes of the current type of wood each month at a price of SEK 2 million.to make a Forest you need 10 kg of the wood and to make a Rain you need 15 kg. The sales price for a Forest to the reseller Sustainable Development Inc. is SEK 2,000 and for a Rain SEK 2,500. Other special costs for a Forest are SEK 600 and for a Rain SEK 250. Maximum sales to Sustainable Development Inc. per month for a Forest are 2,000 and for a Rain 1,000 st.Calculate the total gross margin per month for Svenska Stolar AB for the two chairs at optimal volume:
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