Company manufacturers and sells three products A,B & C. The unit cost and revenue structure for each product and its maximum forecast demand for the coming period are as follows:-
|
Product
|
A
|
B
|
C
|
|
Selling price per unit (Shs.)
|
140
|
100
|
120
|
|
Variable cost per unit (Shs.)
|
70
|
60
|
80
|
|
Maximum demand (units)
|
500
|
300
|
300
|
|
Machine hours required per unit
|
10
|
4
|
5
|
The company has a maximum of 6000 machine hours available during the coming period
Required
Calculate the number of units of each product A, B, and C which should be produced and sold in order to maximize profit
Calculate the maximum profit earned from the decision strategy per 1
Suggest other factors which management may wish to consider which could result in a change in their decision
Calculate the product units to be produced and sold and the net profit earned if the company wish to maximize sales of product A because it is thought to be a future market leader
Calculate the product units to be sold and the net profit earned it the company agree to produce a minimum of 70% of the maximum demand of each product in order to maintain market spread.