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San Diego State University Operations And Supply Chain Management Assignment Help - Units


Question - Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the
most profitable mix. Sales prices, demand, and use of manufacturing inputs follow:

Basic Classic Formal
Sales price $ 31 $ 65 $ 191
Maximum annual demand (units) 20,100 10,100 30,100
Input requirement per unit
Direct material 0.6 yards 0.2 yards 0.5 yards
Direct labor 0.6 hours 1.9 hours 7.1 hours

Costs
Variable costs
Materials $ 19 per yard
Direct labor $ 15 per hour
Factory overhead $ 3 per direct labor-hour
Marketing 10 % of sales price
Annual fixed costs
Manufacturing $ 36,100
Marketing $ 8,010
Administration $ 30,100

The company faces two limits: (1) the volume of each ...Read More

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