G. Kunz and Sons Inc. manufactures two products used in the heavy equipment industry. Both products require manufacturing operations in two departments. The following are the production time (in hours) and profit contribution figures for the two products. Labor-Hours ProductProfit per UnitDept. ADept. B1$256122$20810 For the coming production period, Kunz has available a total of 900 hours of labor that can be allocated to either of the two departments. Find the production plan and labor allocation (hours assigned in each department) that will maximize the total contribution to profit.

The question is related to limiting factor i.e. labor hours. As per the given data there are two…

Answered: two products used in the heavy…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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G. Kunz and Sons Inc. manufactures two products used in the heavy equipment industry. Both products require manufacturing operations in two departments. The following are the production time (in hours) and profit contribution figures for the two products.

		Labor-Hours
Product	Profit per Unit	Dept. A	Dept. B
1	$25	6	12
2	$20	8	10

For the coming production period, Kunz has available a total of 900 hours of labor that can be allocated to either of the two departments. Find the production plan and labor allocation (hours assigned in each department) that will maximize the total contribution to profit.

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