Question
The Wester Company produces three products with the following costs and selling prices: A B C Selling price $21 $12 $32 VC/u 11 7 18
The Wester Company produces three products with the following costs and selling prices:
A B C
Selling price $21 $12 $32
VC/u 11 7 18
DHL/u 0.4 0.1 0.7
Machines hours per unit 0.2 0.5 0.2
Demand (in units) 300 500 200
The company has insufficient capacity to fulfil all of the demand for these three products.
If direct labour hours (DHL) are the constraint, then the opportunity cost is
If direct machine hours (MH) are the constraint, then the three products should be produced in the order
If direct labour hours (DHL) are the constraint, then the marginal product is
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