Question
The Wise company manufactures and sells three different products. It uses one machine only in producing the products, one at a time. Its normal factory
The Wise company manufactures and sells three different products. It uses one machine only in producing the products, one at a time. Its normal factory capacity is 10,000 machine hours per month. For a unit of product, the following data are given:
ProductSelling Price per unitVariable cost per unitMachine Time
APhp 15.00 Php 10.202 hrs
B 20.0015.8020 mins
C6.005.00 1 hr.
At present, the market can absorb 2,500 units of product A. 10,000 units of product B, and 12,000 units of Products C.
Determine if how many units of X and Y must be produced and be sold to maximize profits.
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