Student Doubts Forum

Problem 42

Re: Problem 42

by Pedro Pinto da Silva Perdigão -
Number of replies: 0
Hello Marta,

If you look at 42.1, the company will only utilize 25 000 of its total 30 000 machine hours in order to meet the total demand for Superior Quality and Intermediate Quality Paint (3 000 * 5h + 4 000 * 2.5h). Therefore, there are still 5 000 Machine hours that can be used elsewhere.

In 42,2, what you're asked to do is to calculate the new profit if those 5 000 Machine hours are used in the production of Low Quality paint.

Hope this helps!