ExpertACCA · Question 23 · Shadow Pricing
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.
BioNutri has the opportunity to rent an additional identical mixing machine. What is the shadow price (maximum premium per hour) BioNutri should be willing to pay for one additional machine hour? (Enter the number only).
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.
BioNutri has the opportunity to rent an additional identical mixing machine. What is the shadow price (maximum premium per hour) BioNutri should be willing to pay for one additional machine hour? (Enter the number only).
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