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Question: A firm manufactures two products A and B which sell for respectively £900 and £2,000 each. It uses the four processes cutting, drilling, finishing and assembly and the requirements per unit of output are:

A: 5 hours cutting, 18 hours drilling, 9 hours finishing and 10 hours assembly

B: 15 hours cutting, 7 hours drilling, 15 hours finishing and 10 hours assembly

How can this firm maximize its weekly sales revenue if the capacity of its factory is limited to 390 hours cutting, 630 hours drilling, 450 hours finishing and 400 hours assembly per week?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92290552

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