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What is the optimal profit for Zander

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Question - Zander Brick Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Product

Sales Value at Split-off

Additional Variable Costs

Sales Value after Further Processing

Soft Bricks

$159,600

$24,000

$188,000

Hard Bricks

124,000

28,200

163,600

Hard Baked Bricks

102,000

19,600

130,000

Required -

a) What is the optimal product mix that will maximize profits for Zander?

b) What is the optimal profit for Zander?

Reference no: EM132622907

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