Question: A company makes two products A and B using a

A company makes two products A and B, using a single resource pool. The resource is available for 900 minutes per day. The contribution margins for A and B are $ 20 and $ 35 per unit respectively. The unit loads are 10 and 20 minutes per unit.
a. Which product is more profitable?
b. The company wishes to produce a mix of 60% As and 40% Bs. What is the effective capacity (units per day)?
c. At the indicated product mix, what is the financial capacity (profit per day)?

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  • CreatedNovember 06, 2015
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