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DEMAND HAS GROWN AND ADEQUATE CAPACITY / TUTORIALOUTLET DOT COM

QUESTION 2 Axis Company produces 3 products on the same equipment. Demand has grown and adequate capacity doesn't exist to meet the market demand for all three.

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DEMAND HAS GROWN AND ADEQUATE CAPACITY / TUTORIALOUTLET DOT COM

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  1. DEMAND HAS GROWN AND ADEQUATE CAPACITY / TUTORIALOUTLET DOT COM

  2. DEMAND HAS GROWN AND ADEQUATE CAPACITY / TUTORIALOUTLET DOT COM Demand has grown and adequate capacity FOR MORE CLASSES VISIT www.tutorialoutlet.com QUESTION 2 Axis Company produces 3 products on the same equipment. Demand has grown and adequate capacity doesn't exist to meet the market demand for all three. Axis has more equipment being installed, but capacity will not increase for four months. In the meantime, Axis's management wants help in deciding how to allocate its scarce capacity. The following information is available: Product A B C Sales Revenue $20.00 $15.00 $12.50 Variable Costs 9.50 7.50 5.00 gigglgélfixed Costs (not w m @ Unit Profit $1.00 $0.00 $1.00 Minutes on Equipment 5 2 3 To maximize profits how should scarce capacity on equipment be used? I. ' Product only A and C since product B doesn't yield any profit. '1‘" Produce up to market demand for product A, then product B, and use any leftover capacity on product C. I.

  3. DEMAND HAS GROWN AND ADEQUATE CAPACITY / TUTORIALOUTLET DOT COM Thank you

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