Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 10

The Morton Company produces and sells two products: A and B. Financial data related to producing these two products are summarized as in the table below
(a) If these products are sold in the ratio of four A's for every three B's, what is the break-even point
(b) If the product mix has changed to five A's to five B's, what would happen to the break-even point
(c) In order to maximize the profit, which product mix should be pushed
(d) If both products must go through the same manufacturing machine and there are only 30,000
machine hours available per period, which product should be pushed Assume that product A requires 0.5 hour per unit and B requires 0.25 hour per unit.