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The management team of SafetyBox Ltd is provided with the following information Product P C R Units Units Units Weekly sales demand (units) 2,500 3,000
The management team of SafetyBox Ltd is provided with the following information
Product P C R Units Units Units Weekly sales demand (units) 2,500 3,000 2,000 E E E Selling price (E/unit) 13 10 15 Material costs (E/unit) 4 2 9 Direct labour costs (E/unit) 4 2 4 Total weekly conversion costs, including direct labour costs, are $41,000. Product P C R Minutes Minutes Minutes Labour time (minutes/unit) 20 10 20 Machine time (minutes/unit) 6 5 8 The factory supervisor has identified "machine time" as the bottleneck. The maximum capacity of weekly machine production time is 550 hoursStep by Step Solution
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