Test $5$B $6$ June $2023$ Engineering Business

Management $($EBM$307$B$)$

Time $60$Min

Question$1$

$15$

Marks

Benny Company produces three products$-$A$,$ B$,$ and C$.$ Data concerning the three products

follow $($per unit$)$:

The company estimates that it can sell $800$ units of each product per month. The same raw material is used in each product. The material costs $$3$ per pound with a maximum of $5,000$ pounds available each month.

Required:

Develop an Excel spreadsheet that will advise the company on:

A$)$ Which orders the company should accept first, those for $A,B,$ or $C?$ Which orders second? Third?

B$)$ What is the maximum contribution margin that the company can earn per month if it makes optimal use of its $5,000$ pounds of materials?