Solution-How many of each type of mattress should be

How many of each type of mattress should be produced

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Question - Zing Inc. produces both soft and firm twin-size mattresses. Selected data related to each product is as follows:

	Soft	Firm
Sales price per unit	$400	$500
Direct materials per unit	95	110
Direct labor per unit	35	55
Variable overhead per unit	15	20
Direct labor hourse per unit	30 minutes	45 minutes

Most of the stuffing process is done by hand. There arc a maximum of 2.400.000 direct labor minutes available each year.

Required:

A. If there is unlimited demand for both products, how many of each type of mattress should be produced in order to maximize profits?

B. lf the company believes that there is sufficient demand for up to 35,000 soft and 33,000 fine mattresses each year, how many of each type should be installed in order to maximize profits?

Reference no: EM131613624

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How many of each type of mattress should be produced

Reference no: EM131613624

Reference no: EM131613624

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