Question
The record label is expanding into physical media. Model the appropriate product mix of vinyl , tape and CD ; using the respective labour, proportional
The record label is expanding into physical media. Model the appropriate product mix of vinyl, tape and CD; using the respective labour, proportional material, price, and costs given in the table below:
Product | Vinyl | Tape | CD | Digital |
Labour | 2 | 0.8 | 0.2 | 0.1 |
Material | 0.8 | 0.4 | 0.1 | 0 |
Unit price | £12 | £8 | £9.99 | £3.20 |
Variable cost | £5.50 | £3 | £4.50 | £0.50 |
Demand | 300 | 50 | 500 | 300 |
Unit profit | £6.50 | £5 | £5.49 | £2.70 |
Work out the profit (factoring in 300 units of ‘Digital’ made) and calculate how much of the other remaining 3 product types (vinyl, tape, CD) should be made, along with the total labour used and material. Constrain your labour used to 1000 hours and your material to 400 units.
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Applied Regression Analysis And Other Multivariable Methods
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
5th Edition
1285051084, 978-1285963754, 128596375X, 978-1285051086
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