Using matrix algebra, the material cost of making one of each product at each location is as follows:
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Product X Product Z
Location A birr 38 birr 50
Location B birr 38 birr 49.5
<h3>What is matrix algebra?</h3>
Matrix algebra involves the arrangement of numbers in a rectangular array.
Matrices are arranged in columns and rows to express some mathematical values.
<h3>Data and Calculations:</h3><h3>Matrix O: Materials Requirement Per Unit</h3>
Steel Glass Plastic
Product X 3 1 2
Product Z 4 0.5 3
<h3>Matrix P: Materials Cost Per Unit</h3>
Steel Glass Plastic
Location A 10 2 3
Location B 9 3 4
<h3>Matrix R: (O x P) Material Cost of Product X</h3>
Steel Glass Plastic Total
Location A 30 2 6 38
Location B 27 3 8 38
<h3>Matrix R: (O x P) Material Cost of Product Z</h3>
Steel Glass Plastic Total
Location A 40 1 9 50
Location B 36 1.5 12 49.5
Thus, Product X costs birr 38 at locations A and B, respectively, while Product Z costs birr 50 and birr 49.5 at locations A and B, respectively.
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