Solved

Karl's Kitchens Is Experimenting with Different Vinegars for Sale on the Domestic

Question 71

Multiple Choice

Karl's Kitchens is experimenting with different vinegars for sale on the domestic market. The contribution margins per carton for three types V1, V2 and V3 are $120, $100 and $150 respectively. The firm is constrained in terms of labour hours, and the labour hours required per carton of each type of vinegar is 2 hours, 1.5 hours and 3 hours respectively. Assume the firm has 2240 available labour hours per month, and the monthly demand is 1200 cartons of V1, 800 cartons of V2 and 300 cartons of V3. What is the product mix that will maximise profit?


A) 800 V2, 520 V1
B) 300 V3, 670 V2
C) 1 200 V1, 800 V2, 300 V3
D) 1 120 V1

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents