A Manager Must Decide on the Mix of Products to Produce

question 49

Essay

A manager must decide on the mix of products to produce for the coming week.Product A requires three minutes per unit for molding,two minutes per unit for painting,and one minute per unit for packing.Product B requires two minutes per unit for molding,four minutes per unit for painting,and three minutes per unit for packing.There will be 600 minutes available for molding,600 minutes for painting,and 420 minutes for packing.Both products have profits of $1.50 per unit.
(i)What combination of A and B will maximize profit?
(ii)What is the maximum possible profit?
(iii)How much of each resource will be unused for your solution?
11eab92b_c49a_c15d_99e6_b1b59fc1dffb

---

Definitions:

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Equity Method

An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.

Book Value

The value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the asset's original cost.