Hello
I am wondering if you might be able to help me with a limiting factor question that i'm having trouble with which the question is as follows
X Limited makes 3 products of which the details are as follows:
Product A Product B Product
Selling price €25 €20 €15
Machine hours per unit 10 12 7
Materials 14kg 12kg 10kg
Labour hour 1.2 hours 0.8 hours 0.4 hours
material rate of €0.50 per kg
Labour rate of €7.50 per hour
Sales unit for the period are as follows
Product A 4,000
Product B 6,000
Product C 6,000
The supply of materials in the period are unlimited but machine hours are limited to 200,000 hours and direct labour are limited to 5,000 hours
the requirement for this questions is to
a) Identify the limiting the limiting factor
b) Calculate the production plan to maximise the contribution for X limited
I am seeming to be having difficulty with this question am wondering if you might be of any help with this limiting factor question
is there anyone that can help with this question please
Regards Mohammed Jaly