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Determine the ranking order of products for mno to maximize

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Reference no: EM132574255

Four products are manufactured by MNO:

                                                        maxi                   midi                  mini             micro

Selling price per unit                     600                400                300          250

variable labor cost per unit(40$/hour) 250               120               140          90

variable material cost per unit              275                250             100            110

Question 1: Each of the four products takes two production hours. Assuming production hours as the overall capacity constraint, the ranking order of products for MNO to maximize its profitability is:

a. maxi, midi, mini , micro

b. maxi, mini, micro, midi

c. micro, mini, maxi , midi

d. micro, midi, maxi, mini

Question 2: Applying the theory of constrains and a throughput accounting approach, and assuming labor to be the bottleneck constraint, the ranking order of products for MNO to maximize its profitability within the labor constraint is:

a. maxi,midi,mini, micro

b. micro, mini, maxi, midi

c. maxi, mini, micro, midi

d. micro, midi, maxi, mini

Reference no: EM132574255

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