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The Great Outdoors Company produces three products which all use the same material. Due to a labour strike, it has become challenging to obtain the
The Great Outdoors Company produces three products which all use the same material. Due to a labour strike, it has become challenging to obtain the material needed for manufacturing the products. The following data is available for the three products: $250 . $100 C $450 Product Selling Price Variable Costs Direct Materials Labour and other costs Quantity of Materials (metres) $100 $85 2.5 $30 $31 $300 $102 2.2 3.0 The demand for the products far exceeds the amount of material that can currently be purchased. The current cost of the material is $10 per metre, and a maximum of 3,000 metres is available each month The Great Outdoors Company must produce a minimum of 300 units of each product. Required 1. How many units of product A, B, and C should The Great Outdoors Company produce? Provide full support for your calculation. 2. What is the maximum amount The Great Outdoors Company would be willing to pay for another metre of material
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