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Problem - Deco2U manufactures home decoration items based on demand from various agents in the Klang Valley. Deco2U focuses on production of the three products as demands for these products are increasing. The machine capacity for the production is currently limited to 4,000 hours because of the system upgrading process.
The following information is available for the three products:
Products
Anggun
Klasik
Elegan
Selling price per unit
RM60
RM70
RM85
Variable cost per unit
RM25
RM30
RM40
Machine hour required per unit of output
2 hours
2.5 hours
Estimated sales demand
900 units
700 units
500 units
Required machine hours
1,800 hours
1,400 hours
1,250 hours
Required -
(a) Determine the mix of products that should be produced during the period.
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