Problem: Craves Company makes four products in a single facility. Data concerning these products appear below:
Product
A B C D
Selling price per unit 27.775 26.838 19.048 26.15
Variable manufacturing cost per unit 11.4 7.5 6.5 9.3
Variable selling cost per unit 3.5 1.6 3.5 1.8
Milling machine minutes per unit 2.5 1.4 0.6 1
Monthly demand in units 2,000 3,000 4,000 1,000
The milling machines are potentially the constraint in the production facility. A total of 12,300 minutes are available per month on these machines.
Reference:
How many minutes of milling machine time would be required to satisfy demand for all four products?
- 11,600
- 7,600
- 12,600
- 12,300