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Determine the product mix that will maximise westclub profit

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Reference no: EM132556893

Question - WestClub Kitchen is experimenting with different vinegars for sale on the domestic market. The contribution margin per carton for three types V1, V2, and V3 are $120, $100, and $150 respectively. The firm is constrained in terms of labour hours, and the labour hours required per carton of each type of vinegar is 2hours, 1.5hours and 3 hours respectively. Assume the firm has 2240 labour hours available per month and the monthly demand is 1200 cartons of V1, 800 cartons of V2 and 300 cartons of V3. Determine the product mix that will maximise WestClub's profit.

Reference no: EM132556893

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