6. Optimal ProductionFor the three standard products (A, B and C) a machine is necessary. Its capacity is limited to1.500 machine hours. The following table shows the max production per product and itsmachine time in use.Capacity (min)max. amount of production (piece)A153.500B53.000с85.000Furthermore, product A and B show a contribution margin of € 5,- per piece, while product Cshows a CM of only € 2,-.Required: What is the optimal program of production (follow the in-class exercise forwedding cakes (relative CM)).

Given data is Product A B C Capacity (min) 15 5 8 Production capacity 3500 3000 5000…

Answered: 6. Optimal Production For the three…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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