PMC Company manufactures and sells three lines of product with contribution margins per unit as follows: Product A = P12; Product B = P2; Product C = P5. Each unit of product requires production time as follows: Product A = 3 hours; Product B = 10 minutes; Product C = 2 hours. The company has plant capacity of 20,000 machine hours a month. The market can absorb 2,000 units of Product A, 24,000 units of Product B and 15,000 units of Product C. What is the most profitable product line on the basis of contribution margin per machine hour? A. ProductA B. ProductB C. ProductC 2. Compute the maximum contribution margin for the month that will meet the conditions stated
PMC Company manufactures and sells three lines of product with contribution margins per unit as follows: Product A = P12; Product B = P2; Product C = P5. Each unit of product requires production time as follows: Product A = 3 hours; Product B = 10 minutes; Product C = 2 hours. The company has plant capacity of 20,000 machine hours a month. The market can absorb 2,000 units of Product A, 24,000 units of Product B and 15,000 units of Product C. What is the most profitable product line on the basis of contribution margin per machine hour? A. ProductA B. ProductB C. ProductC 2. Compute the maximum contribution margin for the month that will meet the conditions stated
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 51P
Related questions
Question
PMC Company manufactures and sells three lines of product with contribution margins per unit as follows: Product A = P12; Product B = P2; Product C = P5.
Each unit of product requires production time as follows: Product A = 3 hours; Product B = 10 minutes; Product C = 2 hours.
The company has plant capacity of 20,000 machine hours a month. The market can absorb 2,000 units of Product A, 24,000 units of Product B and 15,000 units of Product C.
- What is the most profitable product line on the basis of contribution margin per machine hour?
A. ProductA
B. ProductB
C. ProductC
2. Compute the maximum contribution margin for the month that will meet the conditions stated
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,