You have limited capacity of machine-hours. You face excess demand for all 4 products. price unit VC machine hours per unit product product product product A B C D $110 $300 $500 $1,000 $50 $200 $200 $700 2 2.5 8 12
You have limited capacity of machine-hours. You face excess demand for all 4 products. price unit VC machine hours per unit product product product product A B C D $110 $300 $500 $1,000 $50 $200 $200 $700 2 2.5 8 12
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:You have limited capacity of machine-hours. You face
excess demand for all 4 products.
price
unit VC
machine
hours per
unit
O product B
product C
product product product product
A
B
C
D
$110
$300
$500
$1,000
$50
$200
$200
$700
Which product should you make?
2
product D
2.5
8
12
make all 4 products to take advantage of the high
demand
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