Production plan and compute profit for that plan

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Maria Salvador, Ltd. produces clothing for the luxury market. The company has only one supplier since they use a special fabric. They have a contract with a company for the whole output - a maximum of 7,700 m2 of the fabric per week, at a selling price of 25 E/m2. Maria Salvador, Ltd. has the following demand, selling price and costs for its products: Scarves Blouses Skirts Demand (units per week) 1,000 2,000 1,500 Selling price per unit 50 e 90 E 125 0 Fabric per unit (m2) m N Direct labor hours per unit 0.25 0.50 0.50 Packing costs per unit Fixed costs are 22,500 E per week for a five-day working week and 400 direct labor hours per day are available at 106 per hour.

Identify the most profitable weekly production plan and compute the profit for that plan.

Reference no: EM133247258

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