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Wilco inc produces three products that each pass through the same machine for finishing. Wilco's finishing machine has a maximum operation capacity of 20,000 machine
Wilco inc produces three products that each pass through the same machine for finishing. Wilco's finishing machine has a maximum operation capacity of 20,000 machine hours. Use the information in the chart below to answer the following questions:
product | total demand | sales price per unit | DM per unit | DL and variable MOH per unit | DL hours per unit | Machine hours per unit |
tallahassee | 1,000 | $100 | $20 | $10 | 5 | 10 |
panama | 1,000 | $80 | $10 | $10 | 4 | 12 |
gainesville | 1,000 | $60 | $9 | $7 | 4 | 11 |
- If Wilco maximizes profitability, how many units of Tallahassee should they produce?
- If Wilco maximizes profitability, how many units of Panama should they produce?
- If Wilco maximizes profitability, how many units of Gainesville should they produce?
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