Choosing the Optimal Product Mix with One Constrained Resource Billings Company produces two product
Choosing the Optimal Product Mix with One Constrained Resource
Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 1,690 hours per year. Product Reno has a unit contribution margin of $115 and requires five hours of painting department time. Product Tahoe has a unit contribution margin of $48 and requires two hours of painting department time. There are no other constraints.