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(Solution Download) Gastineau Corporation's two products have the following characteristics: J45Z W47E Selling price...


 

 

 

 

 

 

Gastineau Corporation's two

 

products have the following characteristics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

J45Z

 

W47E

 

  Selling price

 

$315.00

 

$198.00

 

  Unit variable cost

 

$240.00

 

$147.60

 

  Monthly demand (units)

 

450

 

970

 

 

 

 

 

 

 

 

The constrained resource is a particular machine that is

 

available for 9,500 minutes each month. Each unit of product J45Z

 

requires 15 minutes on this machine and each unit of product W47E

 

requires 8 minutes on this machine.

 

 

 

 

 

 

 

 

 

Up to how much should the company be willing to pay to obtain

 

enough of the constrained resource to satisfy demand for the two

 

existing products?

 

 


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