The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available 360 hours Sales units: Product B: a maximum of 90 and at least 20 units Product P: a maximum of 80 and at least 10 units Required: Calculate the optimal production size for product B, using the graphical method. NB: You are not required to enter the unit or currency symbol.
The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information:
|
|
Prod. B |
Prod. P |
|
Selling price per unit |
80.00 |
50.00 |
|
Less cost of sales: |
|
|
|
Direct material A @ R5.00 per kg |
15.00 |
10.00 |
|
Direct material B @ R4.00 per kg |
8.00 |
12.00 |
|
Direct labour @ R6.00 per hour |
12.00 |
6.00 |
|
Variable manufacturing overhead @ R5.00 per labour hour |
10.00 |
5.00 |
|
Fixed manufacturing overhead per unit |
5.00 |
5.00 |
|
Gross profit |
30.00 |
12.00 |
|
Less sales & administrative costs: |
|
|
|
Variable |
6.00 |
4.00 |
|
Fixed |
10.00 |
5.00 |
|
Net profit per unit |
14.00 |
3.00 |
Take note of the following constraints:
Material A available 360 kg
Material B available 360 kg
Labour hours available 360 hours
Sales units:
Product B: a maximum of 90 and at least 20 units
Product P: a maximum of 80 and at least 10 units
Required:
Calculate the optimal production size for product B, using the graphical method.
NB: You are not required to enter the unit or currency symbol.
Provide your answer in numerical form, with no spaces in between. For example: 1000.
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