Reference no: EM132559323

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