The constraint at Mirsch Inc.is a key raw material.A total of 9, 600 ounces of this constrained resource are available.Data concerning the company's two products, B01 and P46, appear below: Each unit of product B01 requires 9 ounces of the constrained raw material;each unit of product P46 requires 12 ounces.
Required:
a.In the present circumstances, which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $210 and that requires 9 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?

Question

The constraint at Mirsch Inc.is a key raw material.A total of 9, 600 ounces of this constrained resource are available.Data concerning the company's two products, B01 and P46, appear below:  Each unit of product B01 requires 9 ounces of the constrained raw material;each unit of product P46 requires 12 ounces.
Required:
a.In the present circumstances, which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $210 and that requires 9 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?

Quizplus · Accepted Answer

The Answer of The constraint at Mirsch Inc.is a key raw material.A total of 9, 600 ounces of this constrained resource are available.Data concerning the company's two products, B01 and P46, appear below:  Each unit of product B01 requires 9 ounces of the constrained raw material;each unit of product P46 requires 12 ounces.
Required:
a.In the present circumstances, which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $210 and that requires 9 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?

The Constraint at Mirsch Inc