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Sleak Teak builds yard furniture using hardwoods and (in a smaller shop) handcrafted knick-knacks from the same sort of wood. Although hardwoods were readily available in the past, recently the have been much more dificult to obtain. The hardwood usage in the two lines of product are

Yard Furniture: Y = 2 Ty - .001Ty2 Knick-knacks: K = 20Tk - .01 Tk2 where Y and Z are units of products. Ty and Tk denote teak used in each product. Yard furniture can be sold at a profit (i.e., net of costs) of $100 per unit and knick-knacks can be sold at a profit of $25 per unit. Sleak Teak has 1300 units of teak available. Explain how should it be allocated?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9222324

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