Which combination of products should be manufactured

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Question: A business makes three different products, the details of which are as follows:

Product (code name)                                          B14                         B17                          B22

Selling price per unit (£)                                      25                           20                             23

Variable cot per unit (£)                                      10                            8                              12

Weekly demand (units)                                       25                           20                             30

Machine time per unit (hours)                               4                             3                               4

Fixed costs are not affected by the choice of product because all three products use the same machine. Machine time is limited to 148 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit?

 

Reference no: EM131436823

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