A Company Produces Three Different Products That All Require Processing

question 100

Essay

A company produces three different products that all require processing on the same machines. There are only 17,000 machine hours available in each year. Production information for each product is: $\begin{array}{lrrr}&A&B&C\\\text { Sales price per unit } & \$ 22.00 & \$ 34.00 & \$ 46.00 \\\text { Variable costs per unit } & \$ 10.00 & \$ 19.00 & \$ 25.30 \\\text { Machine hours necessary to produce one } & .75 & 1.2 & 2.3\\\text { unit }\end{array}$
Required:
(1) Determine the preferred sales mix if there are no market constraints on any of the products.
(2) Determine the preferred sales mix if the demand is limited to 7,000 units for each product.
(3) Determine the preferred sales mix if the demand is limited to 8,000 units for each product.

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Definitions:

Anima/Animus

The soul; the archetype of the opposite sex of the individual.

Shadow Archetype

A concept in Jungian psychology representing the unconscious aspects of the personality which the conscious ego does not identify in itself.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Unconscious

The Unconscious is a part of the mind that stores feelings, thoughts, urges, and memories that are outside of our conscious awareness, influencing behavior and decisions.