Answer:
Based on the available information, the company should produce 27,900 units of couches in a month. This decision may be different if we have the product profitability information in terms of contribution of each product.
Explanation:
Couches Bed(s)
Production per machine hour (unit) 3 2
Available Capacity (Machine hour per month) 9,300 9,300
Total possible production (unit) (9,300 x 3)-Couches 27,900
Total possible production (unit) (9,300 x 2)-Bed 18,600
Based on the available information, the company should produce 27,900 units of couches since it is the production activities that produces a higher number of units in a month compared to the production of beds which can only yield 18,600 units considering the available production capacity of 9,300 machine hours per month.
The decision may be different if we have the product profitability information in terms of contribution of each product.
