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To determine the new product mix and total contribution, we need to consider the existing limiting factors and the demand for each product. Given: Contribution
To determine the new product mix and total contribution, we need to consider the existing limiting factors and the demand for each product.
Given:
Contribution per unit for Product A: R
Contribution per unit for Product B: R
Demand for Product A: units
Demand for Product B: units
To find the new product mix, we need to allocate the available resources based on the contribution per unit. Since the contribution per unit for Product A is higher, we should prioritize producing more units of Product A
Let's assume the available resources are sufficient to meet the demand for both products. In that case, we can allocate the resources as follows:
Calculate the total contribution for each product:
Total contribution for Product A: R units R
Total contribution for Product B: R units R
Calculate the contribution ratio for each product:
Contribution ratio for Product A: RR R
Contribution ratio for Product B: RR R
Determine the new product mix:
New units of Product A: units
New units of Product B: units
Therefore, the new product mix is units of Product A and units of Product B
The total contribution for the new product mix is RR units for Product A and RR units for Product B resulting in a total contribution of R
Please note that if the available resources are not sufficient to meet the demand for both products, the product mix and total contribution may vary.
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