A farming company is able to produce four products and is planning its production mix for the
Question:
A farming company is able to produce four products and is planning its production mix for the next period. Estimated costs, sales, and production data are given below.
PRODUCT: OKRO BEANS MELON PEANUT
¢ ¢ ¢ ¢
Selling Price 40 60 80 72
Labour (@ ¢2/hr) 12 8 28 20
Fertilizer (@ ¢1/kg) 12 36 20 24
Contribution 16 16 32 28
Resources / Unit
Labour (hours) 3 2 7 5
Fertilizer (Kgs) 6 18 10 12
Max. Demand (units) 10,000 10,000 10,000 10,000
Required:
(a) Based on the above data, what is the most appropriate production mix under the following assumptions?
(i) If labour hours are limited to 100,000 in a period or
(ii) If fertilizer is limited to 220,000 Kgs. in a period.
Please type the answers
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster