Question
The Random Company manufactures two? products: Zeta and Beta. Each Product must pass through two processing operations. All materials are introduced at the start of
The Random Company manufactures two? products: Zeta and Beta. Each Product must pass through two processing operations. All materials are introduced at the start of process No. 1. There are no? work-in-process inventories. Random may produce either one product exclusively or various combinations of both products subject to the constraints shown to the right. A shortage of technical labor has limited Beta production to 400 units per day. There are no constraints on the production of Zeta other than the hour contraints shown in the schedule. Assume that all relationships between capacity and production are linear.
Process No. 1 Process No. 2 Contribution Margin per Unit Hours required to produce 1 unit of: Zeta Beta Total Capacity in hours per day 1 $3.75 $5.50 3 1 1000 hours 1325 hours Given the objective to maximize total contribution margin, what is the production contraint for Process No. 1? Zeta +Beta (Type whole numbers.)
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