| Profit Maximisation - Exercise 3.26 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| (a) | Cords | Jeans | Chinos | Total | |
| Units demanded | 30000 | 36000 | 48000 | ||
| Machine hours per unit | 0.5 | 0.75 | 0.5 | ||
| Total machine hours required | 15000 | 27000 | 24000 | 66000 | |
| (b) | Selling price | 56 | 60 | 44 | |
| Less Variable costs | 26 | 32 | 20 | ||
| Contribution per product | 30 | 28 | 24 | ||
| (c) | Contribution per product | 30 | 28 | 24 | |
| Machine hours per unit | 0.5 | 0.75 | 0.5 | ||
| Contribution per machine hour | 60 | 37.333333333333336 | 48 | ||
| (d) | Order of priority | first | Cords | ||
| second | Chinos | ||||
| third | Jeans | ||||
| (e) | Machine hours available for production | 15000 | 21000 | 24000 | 60000 |
| (f) | Machine hours available | 15000 | 21000 | 24000 | |
| Machine hours per unit | 0.5 | 0.75 | 0.5 | ||
| 30000 | 28000 | 48000 | |||
| units | units | units |