24. A company manufactures two products, A and B. Product A Yields a contribution of Rs 30...
Question:
24. A company manufactures two products, A and B. Product A Yields a contribution of Rs 30 per unit and product B Rs 40 per unit towards profits and fixed costs. It is estimated that the sales of product A for the coming month will not exceed 20. Sales of product B have not been estimated but the company does have a contract to supply at least 10 units to a regular customer.
Machine hours available for the coming month are 100 and products A and B require 4 hours and 2 hours respectively, to produce one unit. Labour hours available are 180 and products A and B require 4 and 6 hours oflabour, respectively. Materials available are restricted to 40 units and the two products each use one unit of material per unit. Determine the optimal product mix.
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