What would be the total incremental profit under your plan

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Question - AG is in the process of reviewing 10 proposals for new project, but the resources only available to work on new project for maximum 9750, hours during the year. The incremental profit and constrained resource required for the proposed project are listed below:

Proposed Project

Incremental Profit

Amount of the Constrained Resource Required

Project 1

36.400.000

2.600

Project 2

26.000.000

3.250

Project 3

3.900.000

1.950

Project 4

23.400.000

1.950

Project 5

15.600.000

3.900

Project 6

13.000.000

1.300

Project 7

10.400.000

650

Project 8

3.120.000

1.300

Project 9

7.800.000

1.300

Project 10

4.160.000

1.300

Total

143.780.000

19.500

Required -

a) Which of the proposed project should the company accept this year?

b) What would be the total incremental profit under your plan?

c) What is your opinion, why company's revenues and costs differ across customer?

Reference no: EM132587191

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