A company makes three produts A, B, and C using a CNC lathe machine(s) which is classified as a single resource pool. The resource is available for 700 minutes per day. The contribution margins for A, B, and C are $20, $35, and $45 per unit respectively. The unit loads are 10, 20, and 25 minutes per unit.

The company wishes to produce a mix of 50% As, 30% Bs, and 20% Cs. What is the effective capacity (units per day)?

The unit load of the mix is 50%*20 + 30%*35 + 20%*45 = 29.5 minutes per unit. The capacity is 700/29.5 = 23.73 units per day

cannot be determined with given set of data

The unit load of the mix is 50%*70 + 30%*35 + 20%*28 = 51 minutes per unit. The capacity is 700/51 = 13.70 units per day

The unit load of the mix is 50%*10 + 30%*20 + 20%*25 = 16 minutes per unit. The capacity is 700/16 = 43.75 units per day