The Constraint at Angstadt Inc

Essay

The constraint at Angstadt Inc.is a key raw material.A total of 9,700 ounces of this constrained resource are available.Data concerning the company's two products,B03 and P22,appear below: Each unit of product B03 requires 6 ounces of the constrained raw material;each unit of product P22 requires 2 ounces.
Required:
a.In the present circumstances,which product is most profitable?
b.How much of each product should be produced?
c.The company is considering launching a new product whose variable cost is $158 and that requires 14 ounces of the constrained resource.What is the minimum acceptable selling price for the new product?