Solution-Choose a production plan that maximizes

Choose a production plan that maximizes contribution

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Reference no: EM13940918

Kaplan Computers manufactures high end computer systems for the graphics design industry. At the present time, the company makes three computers with the following characteristics:

	Computer 1	Computer 2	Computer 3
Unit selling price	$12,000	$11,000	$10,000
Unit variable cost	7,000	8,500	8,000

The manufacture of the computers requires three major activities during their assembly. There is limited capacity for each resource. The following table shows the amount of each resource consumed by each computer and the capacity available of that resource.

	Computer 1	Computer 2	Computer 3	Capacity
Resource A	3	4	6	24,000
Resource B	5	6	2	36,000
Resource C	8	3	2	32,000

Additional resources are available, but need to be purchased in 1,000 unit increments.

Required:

Assume that demand for each product exceeds the capacity available. Choose a production plan that maximizes contribution.

Reference no: EM13940918

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Choose a production plan that maximizes contribution : Kaplan Computers manufactures high end computer systems for the graphics design industry. At the present time, the company makes three computers with the following characteristics, Choose a production plan that maximizes contribution

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Choose a production plan that maximizes contribution

Reference no: EM13940918

Reference no: EM13940918

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