Making Production Decisions with Constrained Resource
Juanita Poblamo makes large ceramic pots for use in outdoor landscape. She currently has two models, one square and the other round. Because of the size of Juanita’s creations, only one pot can be fired in the kiln at a time. Information about each model follows:
| Square | Round |
Sales price | $70 | $90 |
Variable cost | $15 | $20 |
Firing time | 2 hours | 3 hours |
Assume that Juanita can sell as many pots as she can create but that she is limited as to the number of hours that the kiln can be run. Determine which model Juanita should produce and explain your answer.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.