The Valor Company Manufactures Two Products: L and M Total Demand for Product L Is 2,000 Units and for and Revenues

question 4

Essay

The Valor Company manufactures two products: L and M.The costs and revenues are as follows:
$$\begin{array} { | l r | r | } \hline & \text { Product L } & \text { ProductM } \\\hline \text { Sales price } & \$ 150 & \$ 112 \\\hline \text { Variable cost per unit } & 90 & 68 \\\hline \text { Machine hours per unit } & 15 & 10 \\\hline\end{array}$$

Total demand for Product L is 2,000 units and for Product M is 1,000 units.Machine time is a scarce resource.During the year,36,000 machine hours are available.Required:
a.How many units of Products L and M should Valor produce?

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Definitions:

Multifaceted Approach

A strategy that involves considering multiple perspectives and employing several methods to address a problem or situation.

Flexible Approach

An adaptable and responsive strategy in business, personal planning, or problem solving that allows for modifications based on changing conditions.

Managerial Thinking

The cognitive process involved in planning, decision making, and problem solving within a management context.

Certainty

The state of being completely confident or having an absolute conviction about something, with no doubts.