Which projects should be selected to maximize revenue

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Question: A software-support division of Blain Information Services has eight projects that can be performed. Each project requires different amounts of development time and testing time. In the coming planning period, 1,150 hours of development time and 900 hours of testing time are available, based on the skill mix of the staff. The internal transfer price (revenue to the support division) and the times required for each project are shown in the table. Which projects should be selected to maximize revenue?

Project

Development time

Testing Time

Transfer Price

1

80                

67           

$23,520

2

248               

208          

$72.912

3

41                

35           

$12.054

4

10                

92           

$32.340

5

240               

202          

$70.580

6

196               

         164           

$67.232

7

269               

226           

$79.184

8

110               

92            

$32.340

Reference no: EM131440533

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