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Calculate the three products should be produced in the order

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Reference no: EM132896029

Question - The Wester Company produces three products with the following costs and selling prices:

 

A

B

C

Selling price

$21

$12

$32

VC/u

11

7

18

DHL/u

0.4

0.1

0.7

Machines hours per unit

0.2

0.5

0.2

Demand (in units)

300

500

200

The company has insufficient capacity to fulfil all of the demand for these three products.

Required -

If direct labour hours (DHL) are the constraint, then calculate the opportunity cost?

If direct machine hours (MH) are the constraint, then calculate the three products should be produced in the order?

If direct labour hours (DHL) are the constraint, then calculate the marginal product?

Reference no: EM132896029

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