A workshop has only 3,000 direct labour hours available next month due to staff shortages. Demand is effectively unlimited.
The workshop can produce Product A or Product B with the following contribution and labour requirements:
• Product A: contribution £8 per unit; 2 labour hours per unit
• Product B: contribution £9 per unit; 3 labour hours per unit
To maximise profit, which product should be prioritised given labour hours are the limiting factor?

Question

A workshop has only 3,000 direct labour hours available next month due to staff shortages. Demand is effectively unlimited. 
 The workshop can produce Product A or Product B with the following contribution and labour requirements: 
 • Product A: contribution £8 per unit; 2 labour hours per unit 
 • Product B: contribution £9 per unit; 3 labour hours per unit 
 To maximise profit, which product should be prioritised given labour hours are the limiting factor?

Accepted Answer

Product A

Answer

Either product, because contribution per labour hour is identical

Answer

Cannot decide unless the selling prices are provided

Answer

Product B

Crowdly

A workshop has only 3,000 direct labour hours available next month due to staff ...

Хочете миттєвий доступ до всіх перевірених відповідей на moodle4.city.ac.uk?