Reference no: EM132556964
Zander Brick Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:
Sales Value Additional Sales Value after
Product at Split-off Variable Costs Further Processing
Soft Bricks $159,600 $24,000 $188,000
Hard Bricks 124,000 28,200 163,600
Hard Baked Bricks 102,000 19,600 130,000
Question 1: What is the optimal product mix that will maximize profits for Zander?
Question 2: What is the optimal profit for Zander?
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