Question

W Incorporation produces three products, Product P, Product Q and Product R. Product P
requires 6 Labor hours per unit to be completed, Product B requires 8 labor hours per unit to
be completed and Product C requires 4 labor hours per unit to be completed. The company's
labor hours are limited to 60,000 hours. The information related to the three products are given
below:
Particulars
Selling price per unit
Variable cost per unit
Demand (units)
Product P
S600
$350
5500
Product Q
$800
$600
4800
Product R
$200
$150
2000
Calculate the maximum number of units that can be produced for Product P provided the
company applies the policy of producing as per optimal utilization of the constrained resource.
a. 4200 units
b. 5500 units
c. 3600 units
d. 2140 units

Answer 1

Answer:

The answer is

b. 5500 units

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