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
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 Scarlett Limited. (8 marks) INFORMATION Scarlett Limited produces 3 products viz. Product A, Product B and Product C. The following information relates to the contribution, machine hour usage, expected demand and the productive capacity for the month in respect of three products that it manufactures: Product A Product B Product C Contribution per unit of output R12 R10 R6 Machine hours required per unit of output 6 hours 2 hours 1 hour Estimated sales demand 1 000 units 1 000 units 1 000 units Machine capacity is limited to 6 000 hours for the month.
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