Page 222 - P1 Integrated Workbook STUDENT 2018
P. 222
Chapter 12
Example 3
Cled produces two products with the following information
Standard Ultra
Selling price per unit $80 $120
Direct costs per unit $50 $60
Hours per unit required at the bottleneck
resource 1.00 2.00
Maximum demand 40,000 18,000
40% of direct costs relate to direct materials. There are 50,000 hours available
at the bottleneck.
Total factory costs in the period are $2m.
Calculate the optimum production mix and the maximum gross profit.
218
