Solution-Determine the preferred sales mix

Determine the preferred sales mix

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Reference no: EM132968610

Problem - A company produces three different products that all require processing on the same machines. The company has only 27,000 machine hours available in each year. Production information for each product is:

	A	B	C
Sales price per unit	$20.00	$38.00	$35.00
Variable costs per unit	$12.00	$26.00	$17.00
Machine hours necessary to produce one unit	25	4.0	4.50

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 5,000 units for each product.

Reference no: EM132968610

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Determine the preferred sales mix

Reference no: EM132968610

Reference no: EM132968610

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