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Which model is best to produce when is a break down

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Zed Ltd manufactures four (4) cellphone models namely : Simple ; Moderate; Delux and Super. The following gives the cost and sales data per unit for each model:

                               SIMPLE             MODERATE              DELUX                   SUPER

Selling Price/ unit         K 500               K 700                K 1,200                K 1,500

Inputs/ resources

Material/unit                 K 100             K 120                K200                     K 250

Labour/unit (K50/Lh)        100               250                   500                    700

Variable prod. Service(a)     50              200                  200                         400

Fixed prod.                     100                200                  200                         400

Note (a) K 100/machine hour

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Question 1. Which model is best to produce when there is a break down in machines?

Reference no: EM132548385

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