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Wildwest Limited manufactures specialist factory equipment. Wildwest estimates that only 200,000 hours of labour at a rate of $40 per hour will be available in

Wildwest Limited manufactures specialist factory equipment. Wildwest estimates that only 200,000 hours of labour at a rate of $40 per hour will be available in the next financial year. The following details relate to Wildwest's planned production of three products A, B and C for the next 12 months.

A

B

C

Selling price per unit

$

100

$

325

$

200

Materials cost per unit

$

10

$

70

$

40

Labour hours per unit

2

5

4

Maximum demand

90 000

30 000

25 000

To maximise profits the products Wildwest Limited should manufacture are:

A.

B then A

B.

B then C, then A

C.

A then C, then B

D.

B then A, then C

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