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Time Tert 2:28:0 A company has several of its staff absent due to being sick with Covid-19 or in isolation and can only produce
Time Tert 2:28:0 A company has several of its staff absent due to being sick with Covid-19 or in isolation and can only produce a limited quantity of products due to this short of more labour hours (DLHs). It is expected that this will last for up to three months. The details for two of its product lines including the weekly demand for these products are given below. As can be seen, not all production is possible of both these two products during this time of capacity constraint. Product A Product B Sell Price (per unit) $2.50 $5.60 Variable production costs per unit $0.90 $2.30 Contribution margin (SP-VC) $1.60 $3.30 Labour Hour Time to produce per unit: 0.01 0.02 Weekly Demand (if all orders could be fulfilled in metres) 100000 80000 Required: Based on the quantity your suggested in your previous answer, calculate the total contribution margin that the company would make each week if they follow your advice and produce the quantities suggested while they only had 1800 labour hours available each week? (2 Marks) Note: Do NOT use dollar signs ($), commas etc. only enter the whole dollar amount. e.g. If you calculate the company would make $1000 only enter 1000 as your answer.
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