DEMAND HAS GROWN AND ADEQUATE CAPACITY / TUTORIALOUTLET DOT COM

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DEMAND HAS GROWN AND ADEQUATE CAPACITY /
TUTORIALOUTLET DOT COM
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DEMAND HAS GROWN AND ADEQUATE CAPACITY /
TUTORIALOUTLET DOT COM
Demand has grown and adequate capacity FOR MORE
CLASSES VISIT www.tutorialoutlet.com QUESTION 2
Axis Company produces 3 products on the same
equipment. Demand has grown and adequate capacity
doesn't exist to meet the market demand for all
three. Axis has more equipment being installed,
but capacity will not increase for four months.
In the meantime, Axis's management wants help in
deciding how to allocate its scarce capacity. The
following information is available Product A B C
Sales Revenue 20.00 15.00 12.50 Variable Costs
9.50 7.50 5.00 gigglgélfixed Costs (not w m _at_
Unit Profit 1.00 0.00 1.00 Minutes on
Equipment 5 2 3 To maximize pro?ts how should
scarce capacity on equipment be used? I. '
Product only A and C since product B doesn't
yield any pro?t. '1" Produce up to market demand
for product A, then product B, and use any
leftover capacity on product C. I.
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DEMAND HAS GROWN AND ADEQUATE CAPACITY /
TUTORIALOUTLET DOT COM
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