Use the information provided below to determine the optimum mix of products that should be produced. Also
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Question:
Use the information provided below to determine the optimum mix of products that should be produced. Also indicate the total contribution that would be earned by Everest Limited on each product. (6 marks)
INFORMATION
Everest Limited has only 2 800 labour hours available to produce three products viz. Product X, Product Y and Product Z. The following information relates to the expected demand and the productive capacity for the next month in respect of the three products that it manufactures:
Product X
Product Y
Product Z
Sales price per unit
R60
R75
R90
Variable costs per unit
R36
R30
R60
Estimated sales demand
600 units
600 units
600 units
Required labour hours
600 hours
1 800 hours
1 500 hours
Posted Date: