Reference no: EM132566644
AG is in the process of reviewing 10 proposals for new project, but the resources only available to work on new project for maximum 12,000 hours during the year. The incremental profit and constrained resource required for the proposed project are listed below:
Proposed Project Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10
Incremental Profit 44,800,000 32,000,000 4,800,000 28,800,000 19,200,000 16,000,000 12,800,000 3,840,000 9,600,000 5,120,000 176,960,000
Amount of the Constrained Resource Required 3,200 4,000 2,400 2,400 4,800 1,600 800 1,600 1,600 1,600 24,000
Required:
Question a) Which of the proposed project should the company accept this year?
Question b) What would be the total incremental profit under your plan?
Question c) What is your opinion, why company's revenues and costs differ across customer?
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