Question: Choosing the optimal Product Mox with a constrained Resource and a Demand Constraint Billings Company produces two products, Product Reno and Product Tahon. Each product
Choosing the optimal Product Mox with a constrained Resource and a Demand Constraint Billings Company produces two products, Product Reno and Product Tahon. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 2.460 hours per year Product Rene has a unit contribution margin of $120 and requires 5 hours of painting department time. Product Tahoe has a unit contribution margin of $75 and requires 3 hours of painting department time. There are no other constraints, Assume that only 500 units of each product can be sold. Required: 1. What is the optimal mix of products Optimal Mix Reno 192 units Tahoe units 2. What is the total contribution margin earned for the optimal mix? 60,540 Food Check My Wor 1. Determine the first priority to meet market demands. Use remaining time for the second product 2. Calculate CM based on mix of products determined Previous Next Check My Work 2 more Check My Work uses remaining
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