Question

S26 Q3: You have the following information related to XYZ Company: Product A Product B Product C Selling price/unit S 20 S 30 VC/unit S 15 S 10 10 Machine-minute required 3,000 units 1,500 units 1,200 units Monthly demand Available capacity: 5,800 machine-minutes Required: What is the product mix that would maximize net operating income? Show your proof! (Hint: to show your proof, utilize the constrained resources based on the C.M per unit)

Answer 1

501- Güven data product A product B Product c $30 $ 10 $26 9110 selling price/unit 1.920 vcl unit -$155 machine-minue required 300 units monthly demand. 1.500 units 1.200 units, Available capacity : 5.800 machine minutes. com-ped unit of product t = selling price per unit -vclunet 20-15 I c.m. per unit of product = $57 Росисе в com per unit = selling price per unit - velunit $ 30 - $10 - $20 Product C c.m per unit - selling price per unit - Velunit $ 26- $10 $16.

A T Product B Pooduct $20 - $15 product C. 9 26 $30 $10 Selling Price per unit Less:v.cperunit com per unit machine-minute per unit. - $10 $20 4. $10.00 $4.00 $ 5.00 com.per machine minute. YO (85119 ($2013) ($1614.) Rank 1 1 1 out of 5.800 machine minutes available total machine minutes reuired to produce product "B" shall be essed first Nex machine minutes totally required to produce product A shall be used; *If there is any balance in machine minute still it shall be used to produce product Product A Pooduct Bl Product 3000 1.500 1.200 Required monthly demand. O machine minute per unit. 3000 3.000 4.800 21x2 Totel machine minute needed!

Therefore 3000 machine minutes used to produce Product B machine minute per unit. Ob nits G Product B produced Machine minutes used to produce Product machine minute per unit. # 06 crits 66 Pooduct B Produced = 3000 # of units G Product B produced = 1.500 A 3000 machine minutes used to produce no minutes used to produce Product machine minute per unit. # O6 units of product A produced a produce product " machine minutes used to per unit. machine-minute # Ob units os product A produced - 3000 # OG cenits OG Product A producede 3.000.

5) machine minutes essed to pooduce product "C" 4.800 machine - minute per unit, # of units of product "c" produced a machine minutes used to produce Product "C" machine-minute per unit. # ob crits of product "C" produced - 4800 4 # of units of product " pooduced = 1200. optimal Product mix to yield maximum probit shall be: Product A Pooduct B. producte! 3.000 :1.500 1.200.