Machine hours are limited to 1,100. Product A has a contribution of £24 per unit, uses 3 hours and has demand of 200 units. Product B has £30, 5 hours and demand of 150 units. Product C has £18, 2 hours and demand of 250 units. What is the maximum total contribution?
Answer and explanation
Correct answer: D. £9,300
- Step 1: Rank by contribution per machine hour: A £8, B £6, C £9.
- Step 2: Make C first: 250 units × 2 hours = 500 hours, contribution 250 × £18 = £4,500.
- Step 3: Then A with the remaining 600 hours: 200 units × 3 hours = 600 hours, contribution 200 × £24 = £4,800. Total = £9,300.
Answer
£9,300.
Why not the others: £7,300 ranks by contribution per unit and makes B first, which wastes scarce hours. £8,100 makes C and then B, wrongly placing B above A even though B earns only £6 per hour. £13,800 is the contribution if all demand were met, ignoring the hour limit.
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