ACCA · Question 22 · Limiting Factor Analysis
Section B - Case 2: BioNutri
BioNutri manufactures two specialized nutritional supplements: Alpha and Beta. Both products require processing on a specialized mixing machine. The machine is available for a maximum of 1,200 hours per month.
Product details:
Alpha: Selling price $50, Variable cost $30, Machine hours per unit: 2 hours. Maximum demand: 400 units.
Beta: Selling price $70, Variable cost $40, Machine hours per unit: 4 hours. Maximum demand: 300 units.
Based on the limiting factor analysis, what is the optimal production plan for the month to maximize profit?
Answer options:
400 units of Alpha and 100 units of Beta
300 units of Alpha and 150 units of Beta
0 units of Alpha and 300 units of Beta
400 units of Alpha and 300 units of Beta
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