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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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