Oruro Chemical Corporation manufactures a variety of household cleaners. solvent

Question

Oruro Chemical Corporation manufactures a variety of household cleaners. solvents, and beverages. Because of a recent shortage of mytron. a key ingredient needed for three of its products, the corporation has to decide what amount of each product would be most advantageous to produce. Information related to the three products that use mytron arc shown below: Assume that Oruro only has 3.000 ounces of mytron next month. What is the maximum amount of margin that Onuro can generate next month from the three products above given the shortage of mvtrofl? 18. Consider the following production and cost data for two products, Q and P: A total of 24.000 machine minutes are available each period and there is unlimited demand for each product What is the largest possible total contribution margin that can be realized each period?

Explanation / Answer

Ans 18:-Machine minutes for Q=24000/8=3000 minutes total contribution margin=$40*3000=120000 Machine minute for P=24000/6=4000 minute Total Contribution margin=$36*4000=144000 Largest possible contribution=144000

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