Problem about plant manufactures two different products


Problem: A plant manufactures two different products: P and Q. Selling prices and weekly market demands are shown in the following table. Each product uses raw materials with costs as shown in the table. The production process consists of two different steps, Fabrication and Assembly. Each step is available for 2,400 minutes per week. Each step is needed by both products; however, Fabrication and Assembly can only process one unit of product at a time. The plant has a fixed operating cost of $12,000/week. Product Unit Selling Price Unit Raw Material Cost Weekly Demand P $190 $100 100 units Q $200 $80 50 units

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Accounting Basics: Problem about plant manufactures two different products
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