Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 vinyltape 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To maximize profit while constraining labor to 1000 hours and material to 400 units we can set up a ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

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

More Books

Students also viewed these Finance questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago

Question

What do you mean by dual mode operation?

Answered: 1 week ago

Question

Explain the difference between `==` and `===` in JavaScript.

Answered: 1 week ago

Question

What are the current computer software platforms and trends?

Answered: 1 week ago