PDR Co. manufactures 4 products using the same machinery. Thefollowing details relate to its 4 products.
| Product A | Product B | Product C | Product D |
| $ per unit | $ per unit | $ per unit | $ per unit |
| | | | |
Selling price | 28 | 30 | 45 | 42 |
| | | | |
Direct material | 5 | 6 | 8 | 6 |
Direct labor | 4 | 4 | 8 | 8 |
Variable overhead | 3 | 3 | 6 | 6 |
Fixed overhead * | 8 | 8 | 16 | 16 |
| | | | |
Profit | 8 | 9 | 7 | 6 |
| | | | |
Labour hrs.per unit | 1 | 1 | 2 | 2 |
Machine hrs.per unit | 4 | 3 | 4 | 5 |
| | | | |
| Units | Units | Units | Units |
| | | | |
Maximum weekly demand | 200 | 180 | 250 | 100 |
*Absorbed based on budgeted labor hours of 1,000 per week.
There is a maximum of 2,000 machine hours available per week
Required:
- Determine the production plan which would maximize the weeklyprofit of PDRCo.
- Prepare a profit statement showing the profit your plan wouldyield.
