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Dear tutor, I do not need for the solution of this question, i just wrote it for application of high and low slack to understand it.
A company makes two poducts, X and Y, using the same type of direct labour Production capacity per period is restricted to 60000 direct labour hours. The contribution per unit is $8 for product x and 6$ for product y. The following constraints apply to production and sales
x<=10000
y<=120005x+4y<=60000
The contribution-maximising output is to produce and sell 10000 units of product x and 2500 units of product y
Here we can see that product x units have been fully utilised and product y units have not been utilies so let us apply
product x-no slack
product y-12000-2500=9500-slackcan we say it is high slack?low slack usually occurs when product y was 13000 instead of 2500?
Don’t talk of high slack or low slack.
If it is relevant to mention because the question required it (and only if the question requires it!) then by all means say that there is a lot of slack in respect of product Y because they would be capable of selling a lot more units if it were not for the constraints.
Dear Tutor, I specifically selected short question for appling high or low slack. I do not need to solve rhe question.
could you explain here is demand for product y is high slack or low slack?I can not get it.I know product y is slack but high or low confuses me
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