Question: Below is the process flow for Products F , G , and H . Each product sells for different prices: F for R 2 0
Below is the process flow for Products F G and H Each product sells for different prices:
F for R G for R and H for R The production process relies on only one unit
each of Resource A and Resource B allocated based on the minutes specified in the
diagram. Raw materials are essential at specific process steps, with costs listed in Rands
per unit. One unit is consumed for each product. The market demand absorbs all
production output.
a To maximize gross margin per unit, which product should you prioritize?
b If sales personnel earn commissions, which products should they focus on selling, and
what's the potential sales volume?
c To maximize gross profit for oneweek, which products and how many units should be
produced?
d Based on the strategy determined in part c what would be the total gross profit for the
week?
X Y
CASE A
Market
CASE C
X Y
Market
Assembly
CASE D
X Y
Market Market
Y X
CASE B
Market
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