Solution-Calculate the optimum production plan

Calculate the optimum production plan

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Reference no: EM131190738

AC manufactures three products, X, Y and Z using the same production line.Details of the three products are shown below:X Y ZSelling price per unit $ 28.00 36.00 42.00Variable cost per unit $ 12.00 10.00 21.50Processing time per unit 2 hours 4 hours 2 hoursThe production line has a capacity of 30,000 processing hours per month and is not used tomake any other products. The monthly demand for the products at the current selling pricesis as follows:X: 8,000 unitsY: 6,000 unitsZ: 6,000 unitsNo inventories are held.

Required:

(a) Calculate the optimum production plan and the resulting contribution permonth based on the above information

Reference no: EM131190738

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Calculate the optimum production plan

Reference no: EM131190738

Reference no: EM131190738

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