Answer:
Combination of products shall be:
Denim = 6,000 bolts
Chenille = 240 bolts
Gauze = 1,200 bolts
Explanation:
As provided the machine hours are limited thus, the constraint is machine hours.
Accordingly contribution per machine hour shall be computed.
Denim has contribution of $14 for each 0.5 machine hour, thus, contribution per hour =
Chenille has contribution of $22 per machine hour
Gauze has contribution of $9 per 0.3 hours, thus contribution per machine hour = = $30
According to contribution per hour, ranking of products shall be
Gauze I
Denim II
Chenille III
Therefore, bolts of gauze to be produced = 1,200 that is maximum
Hours required = 1,200 0.3 = 360
Hours remaining = 3,600 - 360 = 3,240
Bolts of Denim to be produced = 6,000 that is maximum
Hours required = 6,000 0.5 = 3,000
Hours remaining = 3,240 - 3,000 = 240
Bolts of Chenille that can be produced = = 240 bolts
Total contribution in this case
= (1,200 $9) + (6,000
$14) + (240
$22)
= ($10,800 + $84,000 + $5,280)
= $100,080