Asked by
Ethan Whitlow
on Oct 23, 2024Verified
The managing director of H Limited is setting the production plan for the next financial year. H has a shortage of skilled labour and wishes to maximise the profitability of the company. H manufactures three products X, Y and Z. There is 200 000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product. 
Assuming all relevant information is provided, in what order should H manufacture its products to maximise profit in the current year?
A) Z then X
B) X then Z
C) X, Y then Z
D) None of the given answers
Skilled Labour
Workforce with specialized knowledge, training, or abilities to perform complex tasks.
Maximise Profitability
The strategic approach businesses use to increase their profits to the highest possible level by optimizing operations, costs, and revenues.
Available Hours
The total number of hours in a given period that can be utilized for productive work or services.
- Evaluate the impact of decisions related to the product mix on a company's financial gains in light of production limitations.
Verified Answer
LD
Learning Objectives
- Evaluate the impact of decisions related to the product mix on a company's financial gains in light of production limitations.
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