ASSIGNMENT QUESTION

ASSIGNMENT QUESTION China Wu Yi Ltd is able to produce four products and is planning its production mix for the next period. Estimated cost, sales and production data are given below:

Product Debreu Exe Wye Zed Sh. Sh. Sh. Sh.

Selling price/unit 320 380 680 560

Direct Labour @ 6/hr 180 120 420 300 Direct Material @Ksh.1/Kg 60 180 100 120

80 80 160 140 Resource/unit Labour (hours) 3 2 7 5 Material (Kg) 6 18 10 12 Maximum demand (units) 5000 5000 5000 5000

Required: Based on the above data what is the most appropriate mix under the two following assumptions

(a) If labour hours are limited to 42,000 in a period.

(b) If material is limited to 80,000 Kg in a period