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Question & Answer: Please see attached picture of the problem which needs to be solved……

Please see attached picture of the problem which needs to be solved.

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Portable Enterprises produces two lines of mobile homes: double-wide and single-wide. Unit cost and revenue data pertaining to each product are shown below: Double-wide Single-wide Selling price $70,000 45,000 $40,000 20,000 Total variable costs Each double-wide home requires 350 different labor hours and 125 machine hours. Each single- wide home requires 175 direct labor hours and 150 machine hours. Demand for each line of homes far exceeds the companys total production capacity. (a) If Portables production capacity is constrained by limited direct labor hours, which line of homes should it produce? (b) If Portables total production capacity is constrained by machine hours, which line of homes should it produce?

Portable Enterprises produces two lines of mobile homes: double-wide and single-wide. Unit cost and revenue data pertaining to each product are shown below: Each double-wide home requires 350 different labor hours and 125 machine hours. Each single- wide home requires 175 direct labor hours and 150 machine hours. Demand for each line of homes far exceeds the company’s total production capacity. (a) If Portable’s production capacity is constrained by limited direct labor hours, which line of homes should it produce? _______ (b) If Portable’s total production capacity is constrained by machine hours, which line of homes should it produce? _________

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