Family demand contribution fixed cost
f1 290,000 $1.20 $60,000
f2 200,000 1.80 200,000
f3 50,000 2.30 55,000
each product requires work on three machines. the standard productivities and capacities are given below. hours per 1000 units
hours available machine
f1 f2 f3
a 3.205 3.846 7.692 1900
b 2.747 4.808 6.410 1900 244
c 1.923 3.205 9.615 1900
a. determine which products should be produced, and how much of each should be produced, in order to maximize profit contribution.
b. suppose the demand potential for f3 is doubled. what is the maximum profit contribution? how much of each product should be produced?