A company produces three different products that all require processing on the same machines. The company has only 27,000 machine hours available in each year. Production information for each product is:
Required:
(1) Determine the preferred sales mix if there are no market constraints on any of the products.
(2) Determine the preferred sales mix if the demand is limited to 5,000 units for each product.
(3) Determine the preferred sales mix if the demand is limited to 3,000 units for each product.

Question

A company produces three different products that all require processing on the same machines. The company has only 27,000 machine hours available in each year. Production information for each product is:
  Required:
(1) Determine the preferred sales mix if there are no market constraints on any of the products.
(2) Determine the preferred sales mix if the demand is limited to 5,000 units for each product.
(3) Determine the preferred sales mix if the demand is limited to 3,000 units for each product.

Quizplus · Accepted Answer

The Answer of A company produces three different products that all require processing on the same machines. The company has only 27,000 machine hours available in each year. Production information for each product is:
  Required:
(1) Determine the preferred sales mix if there are no market constraints on any of the products.
(2) Determine the preferred sales mix if the demand is limited to 5,000 units for each product.
(3) Determine the preferred sales mix if the demand is limited to 3,000 units for each product.

A Company Produces Three Different Products That All Require Processing