SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct
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Question:
SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product:
Table
Chairs
Cabinets
Bookshelves
CM/Unit
P25
P20
P28
P24
DLH/Unit
5 hours
2 hours
7 hours
5 hours
Maximum demand
3,500 units
12,000 units
5,000 units
3,000 units
What will be the highest contribution margin if we prioritize the products properly?
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