Question: Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component z. The selling price of Component Y
Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component z. The selling price of Component Y is $15, and the selling price of Component Z is $20. The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11. The machine hour requirement and demand for the two products are: Component Y Component z Monthly demand 1000 2500 Machine hour required per unit 2 hours 3 hours Avocado Ltd's production capacity is 6500 machine hours per month. The optimal product mix is: Select one: O A. 1000 units Y, 2500 units z OB. O units Y, 2167 units Z OC. 1500 units Y, 1000 units z D. 1000 units Y, 1500 units Z
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
